5007-N Information Sheet About Manitoba Tax Credits

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Calculate your Manitoba tax credits on Form T1C (MAN.), Manitoba Tax Credit Programs, which we have included with this package. Before calculating your cost-of-living and property tax credits, you have to determine your net family income. Net family income is the total of your net income and your spouse's net income. The term spouse includes a common-law spouse as defined on page 10 of the federal tax guide.

General information

Do you have a spouse?

If you had a spouse on December 31, 1997, you and your spouse have to decide who will claim the cost-of-living and property tax credits for both of you. The spouse who makes the claim has to meet the eligibility requirements outlined in this information sheet.

If your spouse died in 1997, only you can claim the cost-of-living and property tax credits for both of you unless you were separated for medical reasons (see "Did you live apart for medical reasons?" below).

Net family income is your net income only.

You cannot claim the cost-of-living and property tax credits for a spouse who was confined to a prison or a similar institution on December 31, 1997, and was there for six months or more during the year.

Year of marriage

If 1997 is the first year we consider you to have a spouse, one spouse can claim a property tax credit on his or her residence before you became spouses, and on your common residence after you became spouses. If you do not claim your spouse as a dependant, your spouse can claim his or her separate residence before you became spouses. When you calculate your credit, net family income includes both spouses' net incomes for the year.

Year of death

Cost-of-living and property tax credits may be claimed on a deceased person's final return. However, if there is a surviving spouse, that spouse has to claim the credits for both spouses unless they were separated for medical reasons (see "Did you live apart for medical reasons?" below). Net family income is the survivor's net income only.

Did you live apart for medical reasons?

If you and your spouse were living apart on December 31, 1997, for medical reasons, and you occupied separate residences for part or all of the year, we consider net family income to be your net income only. Do not enter an amount on line 2 of Form T1C (MAN.). Be sure to enter your spouse's address in the "Calculating net family income for the cost-of-living and property tax credits" section on Form T1C (MAN.).

If this is your situation, both you and your spouse can claim cost-of-living credits and property tax credits. For the property tax credit, one spouse claims a credit for the common residence for the year. The other spouse claims a credit for the other residence for the time you were living apart (see "Nursing home fees" on page 3 of this information sheet).

However, if you are claiming your spouse as a dependant, or if your spouse has transferred his or her age or disability credit to you, you have to make a joint cost-of-living claim for both of you. Net family income is still your net income only. Do not enter an amount on line 2 of Form T1C (MAN.).

Are you separated or divorced?

If you were separated or divorced on December 31, 1997, both of you can claim a cost-of-living tax credit. However, if one spouse claims the other as a dependant, the person claimed cannot claim a cost-of-living tax credit. For the property tax credit, both you and your spouse can claim a credit on your separate residences after the separation or divorce. However, only one spouse can claim a property tax credit for the family residence you both lived in before the separation or divorce.

If you are a parent, and you are claiming an equivalent-to-spouse amount (line 305) for a child, only you can claim the Manitoba tax credits for that child.

If you share joint custody of a child and no one is claiming the equivalent-to-spouse amount, you and the other parent can decide which parent will claim the Manitoba tax credits for the child. If you cannot agree on who will claim the credits, then only the parent with the higher adjusted net income (line 5 of Form T1C (MAN.) TC, Manitoba Income Tax) can claim the credits for the child.

Do you have dependants?

You cannot claim Manitoba tax credits for a dependant who:

• received provincial or municipal social assistance payments in 1997; or
• was confined to a prison or a similar institution on December 31, 1997, and was there for six months or more during the year.

Were you bankrupt in 1997?

If you were bankrupt in 1997, claim your Manitoba tax credits on the last return you file for the year.

Cost-of-living tax credit

You can claim this credit if you were a resident of Manitoba on December 31, 1997, and you were:

• 18 or older on December 31, 1997; or
• younger than 18 on December 31, 1997, and you either had a spouse, were a parent, or can claim the Manitoba property tax credit on your 1997 return.

You cannot claim the cost-of-living tax credit if any of the following apply:

• you were confined to a prison or a similar institution on December 31, 1997, and you were there for six months or more during the year;
• someone else claimed you as a dependant;
• you transferred part or all of your age amount or disability amount to your spouse; or
• you transferred part or all of your disability amount to someone other than your spouse.

What credits can you claim?

Basic credit ($190)

Age credit for self ($110) - Claim this credit if you were born in 1932 or earlier.

Basic credit for spouse ($190) - Claim this credit if you had a spouse on December 31, 1997.

Age credit for spouse ($110) - Claim this credit if your spouse was born in 1932 or earlier.

Disability credit for spouse ($110) - Claim this credit if you claimed a transfer of your spouse's disability amount on line 326 of your return or if your spouse can claim the disability amount on line 316 of his or her return.

Equivalent-to-spouse credit ($190) - Claim this credit if you claimed the equivalent-to-spouse amount on line 305 of your return.

Disability credit for self or for a dependant other than your spouse ($110) - Claim this credit if:

• you claimed the disability amount on line 316 of your return; or
• you or your spouse claimed the disability amount on line 318 of your return or your spouse's return.

If you and a supporting individual other than your spouse can claim an amount for the same dependant on line 318, but you cannot agree on who should make the claim, only the individual with the higher adjusted net income (line 5 of Form T1C (MAN.) TC, Manitoba Income Tax) can claim the credit.

Enter the number of disability claims at box 6095 of Form T1C (MAN.).

Credit for disabled dependants ($60) - Claim this credit for each infirm dependant age 18 or older for whom you or your spouse claimed an amount on line 306 of the return. If you and a supporting individual other than your spouse can claim an amount for the same dependant on line 306, but you cannot agree on who should make the claim, only the individual with the higher adjusted net income (line 5 of Form T1C (MAN.) TC, Manitoba Income Tax) can claim the credit.

Enter at box 6097 of Form T1C (MAN.) the number of disabled dependants, but do not include a dependant for whom you claimed the equivalent-to-spouse credit (line 10).

Credit for dependent children born in 1979 or later ($25) - Claim this credit for each dependent child who was 18 or younger on December 31, 1997, if all of the following conditions apply:

• you are the parent (legal or in fact) of the child;
• the child was resident in Canada and lived with you in 1997;
• no one else is claiming this credit for the child;
• no one is claiming a spousal amount or an equivalent-to-spouse amount for the child; and
• a special allowance under the Children's Special Allowances Acthas not been received by anyone (such as a foster parent) for the child.

Enter at box 6099 of Form T1C (MAN.) the number of dependent children, but do not include a child for whom you claimed the equivalent-to-spouse credit (line 10) or the credit for disabled dependants (line 12).

Please provide details of your dependent children in the chart on the back of Form T1C (MAN.) TC, Manitoba Income Tax.

Property tax credit

If you are a homeowner who has received the Manitoba resident homeowners tax assistance of $250 by application or as a reduction from your 1997 realty tax statement, do not complete the Manitoba property tax credit if either of the following apply:

• you are 64 years of age or younger, and your net family income is more than $27,500; or
• you are 65 years of age or older, and your net family income is more than $37,500.

You can claim the property tax credit if you were a resident of Manitoba on December 31, 1997, and you met all of the following conditions:

• you paid rent or property tax on a principal residence (see definition below) in Manitoba in 1997;
• your occupancy cost (see definition below) was more than $250; and
• you were 16 or older on December 31, 1997.

You cannot claim this credit if:

• someone else claimed you as a dependant;
• you were living in the home of someone who claimed a spousal amount for you or to whom you transferred part or all of your age amount or disability amount; or
• you were living in the home of a person who claimed a property tax credit.

Shared accommodation

If you shared accommodation with one or more people, only one of you can claim a property tax credit for the residence. If one person received a shelter allowance, that person has to claim the property tax credit.

Occupancy cost

To qualify for the property tax credit program, your occupancy cost for 1997 must be more than the base amount of $250. Your occupancy cost is based on the net property tax paid, resident homeowners tax assistance received, and 20% of the total rent paid.

You can only claim a property tax credit on one principal residence at a time. A principal residence is a dwelling unit plus up to ½ a hectare of land on which the dwelling unit is located in Manitoba that you, or you and your spouse, either owned or rented and usually lived in during 1997. You cannot claim property tax or rent you paid for a secondary residence such as a cottage.

If you owned or rented a residence at different times during 1997, claim the rent and the property tax you paid that applies to the time you lived in each residence.

Receipts - Do not send property tax or rent receipts with your return, but keep them in case we ask to see them. If you are using EFILE, show your receipts to your EFILE service provider.

Farmers

See the definition of a principal residence on this page.

Nursing home fees

If you paid nursing home fees, you can claim as rent 50% of fees that you do not claim as medical expenses.

Mobile homes

If you lived in a mobile home, claim your municipal licence as your net property tax, and the rent you paid for the lot as rent.

Total rent paid in 1997 (line 17) - Enter at box 6110 the rent you paid in Manitoba in 1997. If you paid room and board, only claim the part for your room.
If you lived in your parent's home, you cannot claim a property tax credit.

Net property tax paid in 1997 (line 18) - If you were a homeowner, enter on line 18 the property tax you paid on your principal residence in Manitoba in 1997 after you deduct any resident homeowners tax assistance you received. If you moved from one residence that you owned to another, claim the property tax you paid that applies to the time you lived in each residence.

Resident homeowners tax assistance (RHTA) received (line 19) - Enter on line 19 any RHTA that you received on your property tax statement or by application. If you owned your principal residence for part of 1997, prorate any RHTA you received to cover the period of ownership. If you received RHTA for more than one residence, total the prorated amounts of all RHTA you received.

Homeowners' school tax assistance

You may qualify to claim the homeowners' school tax assistance if all of the following apply:

• you were born in 1942 or earlier;
• your net family income is less than $23,800;
• you own, are buying, or are a life tenant of a principal residence; and
• you paid more than $160 in school tax for that residence.

School tax paid in 1997 (line 29) - Enter at box 6122 the school portion of the municipal tax you paid on your principal residence in Manitoba in 1997.

Shelter allowance program benefits received (line 34) - Enter on line 34 any payment you or your spouse received under the shelter allowance program (SAFER or SAFFR) during 1997.

Social assistance recipients

If you or your spouse received provincial or municipal social assistance payments in 1997, complete the calculation on the back of Form T1C (MAN.). If you and your spouse each received Form T5007, or if you or your spouse received more than one Form T5007, enter on line 38 whichever fraction shown in box 14 is less .

Learning tax credit

You can claim this credit if you were a resident of Manitoba on December 31, 1997, and one of the following applies:

• you are claiming eligible tuition fees paid for 1997 on line 320 of Schedule 11;
• you are claiming the education amount on line 322 of Schedule 11; or
• you are a supporting person who is claiming a transfer of tuition fees or the education amount from a child, grandchild, or spouse on line 324 or line 326 of your return.

The credit is 10% of the tuition and education amounts. If a student does not need to use the full tuition and education amounts to reduce his or her federal tax to zero, and transfers the unused part to a supporting individual-a spouse, parent, or grandparent-the supporting person can claim the learning tax credit on the transferred amount. However, the total credit claimed by a student and a supporting person cannot be more than 10% of the tuition and education amounts.

Calculate your credit on the back of Form T1C (MAN.).

Political contribution tax credit

The Manitoba political contribution tax credit is a non-refundable tax credit you can use to reduce your Manitoba tax payable. You can claim this credit if you contributed to a registered Manitoba political party or candidate in 1997.

Use the chart below to calculate your credit. Enter the result on line 48 on the back of Form T1C (MAN.).

If your contributions are $1,150 or more, enter $500 on line 48.

Receipts - Attach official receipts to your return.
If you are using EFILE, show your receipts to your EFILE service provider.

Date modified:

2002-12-11