With tax season fast approaching, it’s important to know that tackling this annual task can help you access benefits and credits that could enhance your financial situation.
Taxes are due to be filed and paid on or before April 30. However, you can file your taxes at any time, which ensures your ability to access some housing and health-care services.
It’s important to file an income tax return each year, even if you have no income, low income or are on social assistance. In contrast, if you don’t file your taxes, you might miss out on tax breaks, income supplements or government subsidies. If you know someone in this situation, you may want to encourage them to file their taxes as well.
“Even if you don’t work or owe any tax, filing a tax return can help you and your family access benefits and feel more financially secure,” said Wendy Fontaine, director of health services, public health and wellness with the Interlake-Eastern Regional Health Authority.
“As part of a caring community, we can also encourage others to file their taxes so they receive the benefits they deserve. Filing income tax returns can support people who are struggling, so it is important for people of all ages to file their taxes.”
Those who don’t file their taxes may miss out on the Canada Child Benefit, GST credit, Canada Carbon Rebate or Disability Tax Credit. Some of these benefits may not be retroactive.
In an example on the provincial government’s website (www.gov.mb.ca/housing/tenants/tax), a single parent with two children under the age of four earning $15,000 annually could potentially access about $16,000 in benefits by filing taxes. In this example, the benefits include a GST refundable credit of $842 ($210.50 paid quarterly), Canada Child Benefits of $12,800 ($1,066.66 paid monthly), Working Income Tax Benefit of $1,844 (with the income tax refund or part paid quarterly), Manitoba Child Benefit of $840 ($35 paid monthly) and Manitoba Personal Tax Credit of $266 (refunded upon tax filing). After filing taxes and accessing benefits, this single parent’s total annual income would increase to $31,592.
According to Jennifer Dann, manager of health services for social work and patient relations with the Interlake-Eastern Regional Health Authority, many people don’t realize that filing taxes also provides important documentation needed when accessing services such as personal care homes or subsidized housing.
“If you or a family member may require a more supportive living environment, it is important to know that personal care home rates are set by Manitoba Health and are calculated based on your Canada Revenue Agency notice of assessment,” Dann said.
“You are required to submit your notice of assessment to the personal care home on an annual basis, and your rates are recalculated accordingly.”
If you are experiencing housing instability, many housing organizations and other support services also require current financial information before considering your application.
“It’s unfortunate when situations like this arise, because working through financial needs becomes even more difficult when there is the added pressure of illness and hospital stays,” Dann said.
“Depending on your legal circumstances, your family may or may not be able to help you file your taxes. Ensuring your taxes are completed annually can ease their burden and make access to programs that enhance well-being or improve social circumstances a smoother process.”
Income tax resources:
• For low-income Manitobans, information about the Community Volunteer Income Tax Program is available at www.gov.mb.ca under the residents’ portal.
• A 24-page plain-language booklet, Get Your Benefits (cfcstaxes.com/get-your-benefits/#get-copy), lists many benefits and programs Manitobans may be eligible for.
• More income tax information is available on the Government of Canada website at www.canada.ca. Information about free tax clinics can be found at www.canada.ca/taxes-help.
• In the Interlake-Eastern region, most communities host a Community Volunteer Income Tax Program, where people with simple tax situations and modest incomes can have their taxes completed for free. To find a program in your area, visit www.ierha.ca/programs-services/life-style/get-your-benefits. Many Seniors Resource Councils participate by acting as drop-off depots for volunteer tax filers.
• For those without a local Community Volunteer Income Tax Program, Community Financial Counselling Services (CFCS) offers tax services both virtually and by phone. CFCS also provides free and confidential financial counselling and coaching, assistance accessing benefits, and counselling for individuals and families impacted by gambling. Visit www.cfcs.mb.ca or call toll-free 1-888-573-2383 to learn more.
