We are just a couple of weeks into the 2019 tax season and here are a few good news items for many taxpayers in Manitoba.
The Refundable Tax Credits are higher than previous years and tax refunds are slightly more for almost all of our clients so far.
Climate Action Incentive
The carbon tax rebate has increased from $170 to $243 for an individual in Manitoba and the amounts for spouse and dependent children have also increased. This will increase your normal refund or reduce your normal taxes payable.
Keep in mind that the price of fuel will increase again April 1 2020. And the increase in fuel prices increases the costs of everything we buy (if you bought it, a truck brought it).
If you can reduce your direct purchase of fuel then you will be better off. And that is the “incentive” of this refundable tax credit: encourage you to use less fuel.
Eventually it may really make a difference in “locally produced products” and there will be a huge financial incentive to “buy locally”.
Canada Child Benefit
The Canada Child Benefit has increased again, so you will notice the improved amount starting July 2020 (based on your 2019 family income).
This improved non-taxable benefit has really helped families financially and have lifted many families out of poverty.
Canada Worker’s Benefit
This refundable tax credit has been increased for those with lower earned income. I’ve already noticed more clients are receiving this credit compared to the previous years, or they are receiving more.
The CWB is calculated using all of the following information: working income, marital status, net income, eligible dependents, and disability tax credit.
Manitoba Education Property Tax Credits
For taxpayers who pay property taxes or rent, and have lower net family income, there may be more refundable credits available. The base amount reduction of $250 has been eliminated so there may be more credits
available. The credits are based on income, so it depends on how your income has changed from 2018 to 2019.
April 30
Generally the tax returns we have processed so far, the refunds seem to be larger than the previous year because of some of these refundable tax credits.
When your taxes are filed electronically, the refunds are normally received in 8-10 business days. And refunds that are direct deposit are the quickest.
The fax filing deadline is April 30 2020 for most taxpayers. If you or your spouse are self-employed, the filing deadline is June 15, but amounts owing will start adding interest on May 1.
Get your taxes filed as soon as possible so you can get your refund as soon as possible.
Even if you will owe, you can still get them filed now and only pay for them on or about April 30.
We look forward to looking after your 2019 income taxes during the next several weeks. And for some of you, meeting with you later in the year: planning your income and taxes for 2020 and beyond. Because as some of you have found out: “Good Tax Advice can be your Best Investment”.
Anni Markmann is a Personal Income Tax Professional and Certified Financial Planner; living, working, and volunteering in our community. Contact us at 204.422.6631 or 36 Dawson Road in Ste Anne (near Clearview Co-op) or info@sataxes.ca