Tax Information for Manitobans Receiving Financial Assistance from Economic Development, Investment and Trade (formerly Economic Development and Jobs)
The following table provides general information to make you aware of the tax implications related to the financial assistance you receive from the department. For additional tax related information, please contact the Canada Revenue Agency (CRA) at 1-800-959-8281 or visit the website at www.canada.ca/en/revenue-agency.
What funding did you receive from Economic Development, Investment and Trade? | ||
FINANCIAL ASSISTANCE TO ATTEND EDUCATION OR TRAINING |
OTHER FINANCIAL ASSISTANCE PAID DIRECTLY TO YOU OR ON YOUR BEHALF | |
This includes financial assistance provided to Manitobans to attend an Adult Learning Centre, college, private vocational institution, university course, employment program or other training initiative. If you do not know if the financial assistance you received was associated with education or training, contact your departmental caseworker. |
A tax slip will only be issued if the series of payments you received totalled over $500.00 in a given tax year. | |
YOU WILL RECEIVE: |
YOU WILL RECEIVE: | |
T4A / T4E Slip All financial assistance directly paid to you or on your behalf (such as tuition) is a reportable benefit. This financial assistance will be reflected as benefits paid on a tax slip issued to you by the department at the end of the given tax year.
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Official Tax Receipt or T2202 Form (Tuition and Enrolment Certificate) Some training institutions are approved to provide you with an official tax receipt or a completed T2202 tax form, allowing you to claim a tuition tax credit when filing your income tax return.
The purpose of the tuition tax credit is to reduce the income taxes students have to pay by taking into account tuition fees paid for certain types of education. If the training institution you attend is not certified/able to issue the official tax receipt or T2202 form, you will not be able to claim the tuition tax credit on your income tax return. The T2202 issued by the institution reflects eligible tuition fees related to the number of months you were in training in the calendar year. This may not be the same as the tuition amount paid in that same year. If the training spans two calendar years, the amount of tuition benefits reflected on the T4A / T4E may not be the same as the tuition fees reflected on the T2202 for the same tax year. The difference may appear on the T2202 for the following year. |
T5007 Financial assistance paid directly to you or on your behalf (i.e. transportation allowance, other allowances) may be reported on a T5007 Statement of Benefits slip issued to you by the department at the end of the tax year. The income shown on the T5007 slip is not taxable. However, the total benefit received must be declared on your income tax return. As per the T5007 completion instructions, the total benefit you received is added to your total income amount, but later deducted when calculating your taxable income. For more information, please contact the CRA. The following financial assistance payments do not have to be reported, as per the T5007 guide:
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Other Important Information: | ||
Income tax may be deducted from the financial assistance paid to you or on your behalf. The amount of income tax deducted will be based on the amount of personal tax credits you claim when completing your TD1 form. You are required to complete this form and provide it to your departmental caseworker. The TD1 form is located on the CRA website: https://www.canada.ca/en/revenue-agency/services/forms-publications.html If your address changes, please notify your caseworker and your training institution so that all tax slips are sent to your correct address. | ||
