Low-income Manitobans missing out on 'life-changing' refunds, says group that files free tax returns

An organization that helps low-income Manitobans file their taxes says people are oftenpleasantly surprised by their returns money that's being left on the table by themany Canadians who don't file their taxes.

"Unless you're familiar with the tax regulations, you don't even know half of the benefits you can tap into," said Mariannina Raimo, a volunteer with Community Financial Counselling Services who helps people fill out their tax forms.

"It's huge."

About one in 10 Canadians don't file their taxes, a 2020 research paper found.

Community Financial Counselling Servicesruns a freewalk-in tax clinic in the basement of the Norquay Building on York Avenue in downtown Winnipeg, helpingManitobansfile their returns and get any refunds they have coming.

That's where Matthew Cox found out thousands of dollars are coming his way.

"I was like, 'Wow, that'sa lot more than I thought I'd get,'" he said, beaming with excitement.

"Frankly, I was very behind on my taxes," said Cox, who works for a local non-profit. "Due to mental health issues and things like that, I hadn't really filed since about 2015."

There are many barriers that keep people from filing, from anxietyto transportation to language barriers, CFCS says.

"Today, I had somebody from Sierra Leone," said Raimo. "I've met people from Ukraine, Poland, the Congo, Somalia, Nigeria, Bangladesh," she added, counting the countries with her fingers.

Raimo came to Canada from Italy as a child and says her parents would have missed out on tax benefits had they not had help from neighbours.

"My parents didn't read and write English," said the retiree, who volunteers three times a week. "They relied on a five-year-old me to help communicate."

That experience inspired her to volunteer with the financial counselling service, to make sure newcomer families and people living on tight budgets get the refunds they deserve.

Unfamiliarity with tax rules can make filing returns stressful and intimidating, CFCS says, leaving many without thehundreds or even thousands of dollars a year they're owed.

Morgan Marshall, the tax program co-ordinator with the non-profit, said getting that cash can be life-changing,especially for those living on low wages and government assistance.

"We've seen people mention that they're going to be able to use their refunds to put a direct deposit down to get some stable housing, or to buy some really good, nutritious meals for them and their family," she said.

"We're hoping that people leave feeling a little bit lighter feeling like they haveone less thing to worry about, and perhaps even some additional dollars and cents that will be in their pocket."

The financial counselling non-profit said this fiscal year, its tax program helpedfile roughly 10,000 returns in Manitoba, recouping about $23 millionforclients.

Some of those funds camethrough programs like the GSTcredit and the Canada housing benefit, whichrequire people to file their taxes, CFCS said.

The group's services are in high demand during tax season, when about 200 to 250 people either dropin to the temporary clinic or use its phoneservice, which is available year-round.

To qualify for the service, a client'sincome must be below $35,000 a year for a single person (or below $50,000 for people living in specific northern regions).

A two-person household with annual income below $45,000 is also eligible ($65,000 for people in the North), with an additional $2,500 allowed per dependent.

Marshall recommends people who are eligible and looking for in-person servicearrive as early as 7 a.m.to take a number for the walk-in clinic, which runs daily from 9:30 a.m. to 2:30 p.m.until May 1.

Low-income Manitobans cashing in with the help of free tax clinic

2 years ago

Duration 2:07

CBC's Emily Brass checks out a free tax clinic in Winnipeg, which helps people on low incomes file their returns and access refunds and benefits they might not otherwise receive.