How much tax credit do I get on my Charitable Donations?

As per Income Tax Act s. 118.1(1), 118.1(3) — Below is a summary of this tax law.

By : Richard – Easy Tax Canada

Maximize your Tax Credit

Up to 75% of a taxpayer’s net income can be claimed as donations, except in the year of death or the year preceding death, when 100% of net income can be claimed as donations.

Only donations to registered charities and other qualified donees (see the Canada Revenue Agency (CRA) definition for a qualified donee) can be claimed as charitable donations.

CRA has a web page, Charities and Giving, where you can search charities listings to see if a particular charity is a registered charity.

If any “advantage” was received (compensation or other benefits) in return for the donation (e.g., tickets, meals), the eligible gift for purposes of the donation claim is reduced by the value of the advantage received.

When a taxpayer has a spouse or common law partner and the combined donations are greater than $200, the donations for both spouses should be combined and claimed on one tax return

Donations can be carried forward for up to 5 years.

The tax credit for donations and gifts is in the form of a non-refundable tax credit.

The tax credit for the first $200 of donations is at the lowest personal tax rate (except for Québec, which uses 20%).

The tax credit for the amount over $200 is at the highest tax rate federally, and for all provinces and territories except Alberta.

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