Tax filing season is here and that means doing everything you can to make the most of your income tax and benefit return. If you've made a donation to a registered charity or other qualified donee and received an official donation receipt, you could be eligible for the charitable donation tax credit.
Here are some tips from the Canada Revenue Agency (CRA) for claiming charitable donation tax credits:
• Determine first whether your donation is eligible:
- Official donation receipts can only be issued by registered charities and other qualified donees. Search for registered organizations on the CRA website at www.cra.gc.ca/charitylists.
• Determine the total amount you wish to claim. In any one year, you may claim:
- Donations made by December 31 of the applicable tax year.
- Any unclaimed donations made in the previous five years.
- Any unclaimed donations made by your spouse or common-law partner in the year or in the previous five years.
• Check to see if you are eligible for the First-Time Donor's Super Credit. The credit provides an extra 25 percent federal tax credit on top of the Charitable Donation Tax Credit.
• Use the CRA's charitable donation tax credit calculator at www.cra.gc.ca/donors to calculate your tax credits.
• Keep your official donation receipts, supporting documents, and proof of payment for five years in case the CRA asks to see them.
Charitable donation tax credits are non-refundable tax credits, which means they are used to reduce tax owed. So, if you do not owe any income tax, you will not get a refund.
Put money back in your pocket this tax season by claiming your charitable donation tax credits. More information is available on the CRA website at www.cra.gc.ca/donors.