Many happy returns

First published on the Winnipeg Free Press.

Rose-Marie bought a toaster with her tax refund last year, among an assortment of other much-needed items for her small apartment.

This year, the Winnipeg retiree living on a tight budget has bigger plans for her tax refund.

“I am really hoping I will receive enough to finally buy a carpet cleaner,” says Rose, a grandmother relying mostly on Old Age Security and Canada Pension Plan for income.

Rose is also among thousands of Manitobans who turn to a long-running free tax preparation service every tax season run by a non-profit organization.

Community Financial Counselling Services (CFCS) is well-known for helping individuals in debt trouble, but it has run a tax preparation and filing service for low-income individuals and families for several years.

“We usually have held a big in-person tax clinic at the Norquay Building doing about 10,000 tax returns per year, but we haven’t been able to do that during the pandemic,” says John Silver, executive director of CFCS.

“So we’ve been doing people’s taxes ‘virtually’ by telephone.”

That’s led to a drop in use among low-income Manitobans. CFCS helped 5,113 individuals file for the 2020 tax year. The hope is more will use the service for the coming 2021 tax filing season when the program launches on February 28, Silver says.

After all, a good many low-income individuals and families could benefit from it — especially those with little to no earned income — or those, who didn’t file in past years, fearing they may owe taxes on pandemic benefits, for example.

That’s because rather than owing money to the government, it’s more likely they are missing out on receiving money from the government, Silver says.

At one time, Kori-Lynn Hardisty was among those missing out. The 21-year-old, who recently finished her high school diploma, used to believe she did not need to file a tax return because she had no income.

“But family members told me to file my taxes with CFCS even if I didn’t earn income.”

It’s a good thing she did.

Hardisty was missing on government benefits, like the GST rebate.

Another plus was the program boosted her overall tax literacy.

“At first I didn’t understand much about taxes other than the need to file, but now I understand why I am filing my taxes and how to prepare to make sure I get the benefits I am eligible for,” says Hardisty, who has used the CFCS program since she was 18.

Rose has been using the tax program for much longer — to the point she knows her tax preparer by name.

“I’ve been using him for years,” she says, adding they often chat about topics other than taxes.

“It’s like I’ve made a friend over the phone.”

And when Rose forgets a receipt or slip, CFCS will delay filing until she finds the missing pieces.

It’s worth the effort, she adds.

Last year, Rose received a $600 refund — a big boost to her budget amid rising costs, including rent.

Of course, the program isn’t for everyone, Silver says.

“It’s limited to people whose individual income is under $35,000 and whose family income is under $45,000, plus $2,500 per child.”