Manitoba Seniors to Receive Senior Economic Recovery Credit

Evelyn Jacks

It’s worth repeating: filing tax returns on time can really pay off.  About 225,000 Manitoba residents aged 65 and over will be mailed a one-time $200 refundable tax credit cheque in May to help defray pandemic-related costs. But the catch is that you must have filed a 2018 tax return. If you did, you’ll automatically receive the money. Late filers aren’t completely out of luck. But you guessed it; they’ll get it much later.

The Senior Economic Recovery Credit will be forwarded to each senior in the household, meaning that couples will get $400.  If one spouse filed a 2018 return and one spouse didn’t, the one who filed will get the cheque this month and the other will claim it on the 2020 tax return. That’s true for those who move to Manitoba and become residents before the end of the year, as well.  hey will be able to claim the credit when filing their 2020 tax return, which will be found on the Manitoba tax credit form.

Another important note:  if there has been a change of address since filing the 2018 tax return, it’s important to let the Manitoba Finance know before May 12. They will ask for your phone number and date of birth as well as your old and new mailing address. Aside from the online form, it’s possible to call general inquiries at 204-945-3744 or 1-866-626-4862 (toll-Free) or email mgi@gov.mb.ca.

Manitoba residents who filed a 2018 tax return last year but now live out of province will receive this credit at their new out-of-province home address. That’s also the case if someone who lives out of province receives the senior’s tax refunds for them. 

In the case of taxpayers who have passed away since filing the 2018 tax filing year, the estate will receive the cheque if the senior was resident of Manitoba in 2020. However, the government will attempt to update records to avoid sending the cheque to the deceased’s address. Executors should be filing for the credit on the 2020 terminal return.  

This is the latest in federal-provincial measures that attempt to shore up the financial hardships suffered by Canadians of every demographic. The money will help seniors manage the effects of the pandemic on their monthly cashflow experienced due to extra costs and investments that have suffered a significant decline. Those extra costs might include establishing communications via internet and paying for delivery of groceries and other costs.   

Other measures introduced to help Manitobans defray extra costs, including those specifics to seniors:

• Sales tax reductions - from 7% to 6% on July 1, 2020 for total sales taxes (federal and provincial) of 11%.
• PST removal - accelerating the removal of $75 million in annual PST from residential and business properties, effective July 1.
• Pharmacare - deferring increases in Manitoba Pharmacare deductible rates scheduled for April 1.
• Elimination of probate fees on the value of the estate of a deceased taxpayer as of July 1, 2020 (currently $70 on the first 10,000 and $7 per $1000 after that.  A million dollar estate, for example would attract probate fees of $7000).  
• Returning up to $110 million to Manitoba Public Insurance (MPI) policy holders; the government plans to reduce vehicle registration fees by 10% this year (renewals after June 30, 2020) and by 30% by 2023.
• Extending three-month deadline for new residents to replace out-of-province driving permits to July 31.
• Instructing Manitoba Public Insurance, Manitoba Hydro and Centra Gas to not charge interest or penalties on customers unable to pay at this time
• Directing Manitoba Hydro and Centra Gas not to disconnect customers at this time.

For businesses:

• Deferring provincial income tax and corporate income tax filing deadlines to Aug. 31
• Extending tax filing deadlines for small and medium-sized businesses with monthly remittances of up to $10,000 on March 22 and this is expected to support more than 20,000 businesses
• Introducing a temporary exception to Employment Standards regulations to ensure temporary layoffs after March 1 do not convert to a termination was announced on March 27
• Providing up to $120 million as part of the Manitoba Gap Protection Program (MGPP), to support small and medium-sized businesses that fail to qualify for the various federal government assistance programs and wage subsidies
• Asking the Workers Compensation Board to offer relief from penalties and late fees
• Providing up to $120 million for employers to supplement wages for hiring a student between May 1 and Sept. 4
• Manitoba Liquor and Lotteries will not charge interest on receivables from restaurants, bars and specialty wine stores
• Extending expiry dates on certain permits, certificates or registrations for trucking industry until July 31
• Postponing non-urgent eviction hearings and suspending scheduled rent increases on March 24

For Students:

• Suspending repayment of Manitoba Student Aid loans until Sept. 30 effective April 1 to reduce the financial burden on post-secondary students during the COVID-19 pandemic
• Post-secondary students to remain eligible for aid, even if they temporarily stop qualifying during the state of emergency period

Additional educational resources: RSVP BY MAY 11. Enrol now for the Virtual CE Summit to get all the technical details of the COVID-19 Canada Emergency Response provisions, and their related tax audit requirements. By enrolling in the Virtual CE Summit now, you will also have access to the online Emergency Pandemic Response Benefits Course. This is Canada’s first online certificate training course for professionals in the Tax, Bookkeeping and Financial Services.

 It’s a sought-after educational solution you need now from Knowledge Bureau in a new format: a professional online course plus interactive live virtual meeting.

Remember:  The online learning release is available now on the Virtual Campus, and the interactive Zoom event will take place on May 13. Deadline for enrolment is May 11.

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