TaxTips.ca
Canadian Tax and
Financial Information
Manitoba Family Tax Benefit

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Manitoba  ->  Non-refundable personal tax credits -> Family Tax Benefit

Manitoba Family Tax Benefit

Manitoba Income Tax Act s. 4.6(16.1)

The Family Tax Reduction, which was available for the 2007 and previous tax years, was replaced in 2008 by the Family Tax Benefit, which is a non-refundable tax credit.

For an individual taxpayer, a tax credit may be claimed based on $2,065 less 9% of net income.  The amount for a taxpayer who can claim only the basic amount is reduced to zero at net income of $22,944 ($2,065/0.09). The actual tax credit is based on the lowest personal tax rate (10.9% in 2008, 10.8% in 2009).

The following table shows the amounts that may be claimed for 2016 and earlier years, and the amounts proposed for 2017 in the Manitoba Fiscal Update of March 8, 2016.  The Manitoba Progressive Conservative Party replaced the NDP government in their April 19, 2016 election, and the proposed change did not happen.

Category Current Proposed
for 2017 - not done
Basic benefit for self $2,065 $2,478
Age benefit for self 2,065 2,478
Disability benefit for self 2,752 3,302
Basic benefit for a dependent spouse, common-law partner, or eligible (equivalent to spouse) dependent 2,065 2,478
Age benefit for spouse or common-law partner (if spouse will have unused age benefit) 2,065 2,478
Disability benefit for spouse or common-law partner, if spouse will have unused disability benefit 2,752 3,302
Benefit for each dependent child age 18 or less at the end of the year, and for whom the taxpayer did not claim the "equivalent to spouse" amount, or the infirm dependent amount 2,752 3,302
Benefit for each disabled dependent age 18+ at the end of the year for whom the taxpayer claimed the infirm dependent amount 2,752 3,302
Disability benefit for each dependent who will have an unused disability amount 2,752 3,302

The above amounts are added together, and then reduced by 9% of net income.  The result is multiplied by the lowest tax rate to get the tax credit amount.  Benefit amounts for dependents must be claimed by the spouse or common-law partner with the higher income.  When the parents of a dependent child are not married or living common-law, only one of them may claim the benefit.  If they cannot agree as to who will claim it, only the individual with the greater income for the year may claim it.

The amounts are not increased for inflation each year.

The Family Tax Benefit is calculated automatically by the Canadian Tax Calculator.

Every taxpayer should ensure that they have completed the TD1MB and TD1MB-WS personal tax credits return forms for their employer in order to ensure the family tax benefit is used to reduce withholding taxes during the year.  These forms can be obtained on the Canada Revenue Agency (CRA) TD1 forms web page.

Tax Tip:  Make sure your employer has an up-to-date TD1 form for you.

Revised: November 27, 2017

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.