Did you donate to a charity? You may be able to claim a charitable donation tax credit
If you donated to a registered Canadian charity or other qualified donee that provides official donation receipts, you may qualify for a charitable donation tax credit when you file your income tax and benefit return.
Where do you get an official donation receipt?
Some examples of other qualified donees are:
- registered Canadian amateur athletic associations
- registered Canadian municipalities
- the United Nations and its agencies
How long should you keep a charitable donation receipt?
You should keep your official donation receipts for six years after the end of the tax year for which you made a claim, in case the Canada Revenue Agency asks to see them.
What donations qualify for a charitable donation tax credit?
Donations of cash, goods, land, and listed securities to a registered charity or other qualified donee may be eligible for a charitable donation tax credit.
How do you calculate your charitable donation tax credit?
To calculate your charitable donation tax credit, you first need to figure out the eligible amount of your charitable donations. Once you know that amount, you need to decide how much you want to claim. In any one tax year, you can claim:
- donations you made by December 31 of that year
- any unclaimed donations you made in the previous five years
- any unclaimed donations your spouse or common-law partner made during the year or in the last five years
You can claim eligible donations of up to 75% of your net income. Gifts of certified cultural property or ecologically sensitive land are not limited to a percentage of your net income.
Are you a first-time donor?
You are considered a first-time donor if you or your spouse or common-law partner have not claimed and been allowed a charitable donation tax credit after 2007. If you qualify, you may be able to claim the first‑time donor’s super credit. However, only gifts of money are eligible. For donations made after March 20, 2013, qualifying first-time donors may receive an additional federal tax credit of 25% on the first $1,000 of monetary donations.
For more information on charities, donations, and charitable donation tax credits, go to cra.gc.ca/charities.
For more information contact any member of our tax team.
This information was made available at: http://www.cra-arc.gc.ca/nwsrm/txtps/2017/tfsk21-eng.html