Maximizing your tax savings Essential credits and deductions for Manitobans

by Michael Silver

Tax season in Manitoba provides many opportunities for individuals and families to reduce their tax burden through various credits and deductions. Understanding and leveraging these credits can significantly ease the financial load at tax time.

Tax credits for families and children

Manitoba residents with children can benefit from several combined federal and Manitoba tax credits aimed at encouraging participation in fitness and cultural activities. The Manitoba Fitness Tax Credit offers parents or young adults aged 16 to 24 the chance to claim up to $500 per year for eligible fitness expenses. For children under 18, the credit may be claimed by either the child or their parent; those aged 18 to 24 must claim it themselves. Additionally, the Manitoba Children’s Arts and Cultural Activity Tax Credit provides a non-refundable credit for eligible non-fitness arts and cultural activities for each child under 16.

Disability tax credit and savings plan

Individuals with disabilities may qualify for the federal Disability Tax Credit (DTC), a significant tax-reduction tool for those experiencing severe and prolonged impairments. To qualify, one must obtain certification from a medical practitioner using Form T2201. The DTC can be transferred to a spouse, common-law partner, or caregiver if unused by the claimant. Qualifying for the DTC also opens eligibility for a Registered Disability Savings Plan (RDSP), a long-term savings option that benefits from government matching through the Canada Disability Savings Grant and additional support via the Canada Disability Savings Bond for lower-income individuals.

Digital news subscription tax credit

Taxpayers subscribing to eligible digital news outlets, such as the Winnipeg Sun’s digital edition, can also claim the Digital News Subscription Tax Credit. This credit offers a 15 per cent federal non-refundable tax credit on amounts paid, up to a maximum of $500 annually, providing up to a $75 yearly reduction.

Tax credit for teachers and educators

Teachers and early childhood educators are entitled to claim a tax credit for eligible school supplies they purchase out-of-pocket. The Teacher and Early Childhood Educator School Supply Tax Credit provides a 15 per cent federal refundable tax credit on up to $1,000 of eligible expenses annually.

Home office and business expense deductions

Employees who work from home and individuals operating a home-based business can deduct portions of their home expenses. However, since the simplified method for employees no longer exists, workers must use the detailed method, prorating expenses such as utilities, rent, maintenance, internet, and office supplies based on the size and specific use of their workspace. Similarly, business owners operating from their residence may deduct a proportional share of mortgage interest, property taxes, insurance, maintenance, utilities, and other home-related costs.

Charitable donation tax credits

Charitable donations made by Manitobans are rewarded through generous combined federal and Manitoba donation tax credits:

• 25.8 per cent credit on the first $200 donated
• 46.4 per cent credit for donations above $200
• 50.4 per cent credit for individuals in Manitoba’s highest tax bracket

Medical expense tax credit

Finally, taxpayers can take advantage of the Medical Expense Tax Credit for eligible medical expenses that exceed the lesser of 3 per cent of their net income or an annual federally determined threshold (approximately $2,635 in 2024). This non-refundable credit is calculated at combined federal and Manitoba tax rates, providing meaningful relief from healthcare costs.

By carefully reviewing these credits, Manitobans can maximize their returns and make tax season significantly less taxing.

Michael Silver, B.Comm. (Hons), CFP®, CHS, is Managing Partner at W.P.G. The Wealth Planning Group