Manitoba’s Tuition Fee Income Tax Rebate
Q. Who is eligible?
A. Anyone who lives and pays taxes in Manitoba and graduated from an eligible post-secondary institution anywhere in the world on or after January 1, 2007 is eligible for the rebate on tuition paid after December 31, 2003.
Q. What is an eligible institution?
A. Eligible institutions are those recognized by the Canada Revenue Agency (CRA). This includes public and private universities, colleges and other educational institutions. If the CRA has accepted your tax credit claims for tuition paid, then that tuition will also be eligible for Manitoba’s tuition rebate.
Q. What if I went to school outside of the province or country?
A. If the school you attended is recognized by the Canada Revenue Agency, you will be eligible for the rebate.
Q. I completed my studies on a part-time basis. Am I still eligible for the rebate?
A. Yes.
Q. How would I receive the rebate?
A. The total tuition paid over the years you attended classes can be reported on your income tax return. A portion can be claimed each year and will be used to reduce the Manitoba taxes you pay. The benefit is non-refundable which means that it can reduce the taxes you pay but no amount is paid directly to you.
Q. How much of a benefit can I receive?
A. Most claimants will receive an annual tax reduction of 10% of the original tuition total (unless the Manitoba tax you owe is less than that amount). The maximum annual benefit is $2,500.
Q. When would I claim the rebate?
A. You would likely report the entire amount of tuition paid in the first year after you graduate, when you are employed and owe Manitoba tax. Once you have reported the entire tuition amount, the Manitoba taxes you pay may be reduced over the next six or more years. You may choose to delay your first claim by up to 10 years. For example:
Graduated 2007
Total tuition paid was $14,000
Maximum claimable under the Tuition Income Tax Rebate is $8,400 (60% of total tuition)
Year 1
2007 Manitoba tax payable $600
Tuition Rebate:
Lesser of: 1) 10% of tuition ($1,400)
2) $2,500 (annual maximum)
3) Manitoba tax payable $600
Remaining claimable tuition $7,800
Year 2
2008 Manitoba tax payable $2,400
Tuition Rebate:
Lesser of: 1) 10% of tuition ($1400) $1,400
2) $2,500 (annual maximum)
3) Manitoba tax payable
Remaining tuition $6,400
Years 3-7
Assuming Manitoba tax payable remains above $1,400 into the future, a tuition rebate will be available for a total of seven years.
Q. Is there a maximum I can claim?
A. The lifetime maximum claim is $25,000.
Q. Can I transfer my credits to someone else?
A. No.
Q. How long do I have to claim the rebate?
A. You must make the initial claim within 10 years of graduating. Depending on the amount of Manitoba income tax that you owe, the benefit will be applied over the next six to 20 years.
Q. If I graduate from more than one program, can I claim the tuition fees paid for both?
A. You are entitled to claim a rebate for all tuition paid within a 20 year period beginning with your initial claim and up to the lifetime maximum of $25,000.
Q. What documentation do I need to support my claim?
A. If requested, you will need to supply your T2202A, which is proof of tuition amounts paid, and proof of graduation such as a diploma, degree or certificate.
Q. What happens if I move out of Manitoba?
A. If you are no longer living in Manitoba, you would not be entitled to receive benefits under this tuition rebate program.
