By providing post-secondary graduates with a 60% income tax rebate on their eligible tuition fees, the Tuition Fee Income Tax Rebate helps recent graduates like you pay for your education while living and working here in Manitoba.
Who is eligible? If you graduated with a degree, diploma or certificate from a post-secondary institution recognized by the Canada Revenue Agency on or after January 1, 2007 and now work and pay taxes in Manitoba, you can benefit from the Tuition Fee Income Tax Rebate. It doesn't matter if your post-secondary training took place in Manitoba or elsewhere.
You are entitled to receive a 60% income tax rebate on your eligible tuition fees to a maximum benefit of $25,000. You can claim your rebate over as little as six years or as long as twenty years.
Here are some examples of what this rebate could mean to you:
|Sample Tuition Fees||60% Rebate|
|$ 5,000||$ 3,000|
If you live in Manitoba and attend a post-secondary institution, you are now eligible to receive a 5% tax credit advance on your tuition fees while you're still going to school. There is an annual credit cap of $250 in 2010, a cap of $500 in subsequent years, and a lifetime cap of $5,000 under the advance. Amounts claimed as an advance will reduce the Manitoba Tuition Fee Income Tax Rebate earned following graduation. The tax credit is claimable by a student even if the federal and provincial tuition and education amounts are transferred to a parent or spouse.
This tuition rebate is claimed on your personal income tax return. Use the form `T1005 - Manitoba Tuition Fee Income Tax Rebate' to calculate the amount to claim on form `MB428 - Manitoba Tax'. The rebate advance is claimed on the form `MB479 - Manitoba Credits.' All forms are located on the Canada Revenue Agency website as follows:
|MB428 - Manitoba Tax||http://www.cra-arc.gc.ca/E/pbg/tf/5007-c/5007-c-12e.pdf|
|MB479 - Manitoba Credits||http://www.cra-arc.gc.ca/E/pbg/tf/5007-tc/5007-tc-12e.pdf|
|T1005 - Manitoba Tuition Fee Income Tax Rebate||http://www.cra-arc.gc.ca/E/pbg/tf/t1005/t1005-12e.pdf|
Eligible tuition is tuition that qualifies for the existing non-refundable tuition tax credit under federal rules. All eligible tuition should be reported on form T1005 - Manitoba Tuition Fee Income Tax. The annual rebate will be the lesser of 1) 10% of the total tuition 2) Manitoba tax payable or 3) $2,500.
When filing your tax return it is not necessary to submit any documentation. However, you may need to provide proof of tuition paid or graduation to support your claim. Documentation may include the Canada Revenue Agency slip T2202a, your degree, diploma or certificate.
If you graduated in a previous tax year (on or after January 1st, 2007) and prior to the current tax year, you may still be eligible to claim the Tuition Fee Income Tax Rebate for those years. For more information and help in making a claim for a prior year, contact the Manitoba Tax Assistance Office.
To find out more about how Manitoba's Tuition Fee Income Tax Rebate can help you put money in your pocket as you put down roots in Manitoba, please call the Manitoba Tax Assistance Office at 948-2115 or toll-free 1-800-782-0771.