Manitoba residents: are you aware that you can benefit from the Manitoba Tuition Fee Income Tax Rebate if you graduated from a post-secondary institution since January 1, 2007? If you are now employed in Manitoba and pay tax in the province, you can apply for a rebate of 60% of your tuition costs to reduce the income tax payable.
To apply for the rebate, the total tuition paid over the years you attended school must be reported on your T1 income tax return. A portion of these fees paid will be used to reduce the amount of Manitoba tax you are required to pay. The provincial tax payable will be reduced over the next six or more years, and you can even delay the first claim by as much as ten years.
Aaron graduates in 2008, total tuition paid $20,000
Maximum claimable - $12,000 (60% of tuition)
Claim in Year One
Manitoba Tax Payable - $600
Tuition Rebate is the lesser of:
Rebate - $600
Remaining tuition claimable $11,400 ($12,000 - $600)
Manitoba Tax Payable - $2,400
Remaining tuition claimable $10,200 ($11,400 - $1,200)
Years Three to Ten:
Assuming Manitoba tax payable remains above $1,200 into the future, the tuition rebate will be available for at least the next eight years.
Here are the important points related to the Manitoba tuition fee income tax rebate:
Note that eligible grads have up to 20 years in which to claim their rebate. The minimum period over which the full rebate can be claimed is six years, so in principle, someone could wait 14 years before starting to file their claims. Thus, eligible 2007 grads who neglected to file a claim or were unaware of the program have lost nothing.
Per Manitoba Finance statistics, for the 2007 tax year the total amount of tuition claimed was $20.3 million, or an average of $4,265 per claimant.
Saskatchewan has a similiar program called The Graduate Retention Program, which is a refundable income tax credit which rebates up to $20,000 of tuition fees paid. There are various rebates available to students based on the length and type of program they are enrolled in.
In New Brunswick, all students enrolled for the first time at a university and attend a provincially funded university are eligible for a $2,000 one time benefit.
For further information on any of these programs, check with your provincial government's Department of Finance.