Donations: Making A Claim During Tax Time


Dons de bienfaisance : Comment les déduire dans ses déclarations de revenus (via ImpotRapide)

Si vous songez à faire un cadeau un peu différent cette année, aider les autres et contribuer à des œuvres de charité pourraient vous intéresser. Si vous avez versé des dons pour une bonne cause, les gouvernements veulent bien vous récompenser pour votre générosité. Vous pouvez réclamer…



This French article “Dons De Bienfaisance: Comment Les Déduire Dans Ses Déclarations De Revenus” is specially arranged for our blog readers looking for French content related to Tax tips and advice. Here is the English version of the same blog post “Donations: Making A Claim During Tax Time”, provided by and with the concent of the TurboTax Canada:

Donations: Making A Claim During Tax Time

If you’re considering a socially conscious gift during the holidays, helping others and giving to charity might be a good option. If you donated money for a good cause, the government is willing to reimburse you for your goodwill.

You can claim a non-refundable tax credit for money you’ve donated to registered charities, national art organizations, registered amateur sports teams, Canadian municipalities or the government of Canada. For other eligible institutions, visit the CRA’s website for details.

When you’re calculating how much you’re eligible to claim, first you need to figure out what amount you’re eligible for, which can be found on your official receipt that’s provided by the organization. Make sure you hold onto that document when you’re filing electronically or include it with your mailed claim. If the organization offers you free tickets or specific benefits with your charity donation, the value of those goods or services needs to be deducted from the eligible amount.

The CRA doesn’t require you to claim all your donations right away, so if you have unclaimed donation amounts from up to five years earlier, they’re also eligible.

Keep in mind that only up to 75 per cent of your net income will be eligible for the tax claim, unless it’s a donation towards cultural property or ecologically sensitive land then 100 per cent of your net income can be claimed.

Once you’ve figured out your eligible amount, you’ll need to calculate your charitable donation tax credit. There are two different percentage rates for the federal government and the provincial government. You’d calculate the amount based on the percentage rates in the CRA’s charitable donation tax rate table, for both federal and provincial, and add them together as one number. There are different rates for donations below $200 and over $200, so keep that in mind when you’re doing your calculations.

If you’re filing a T1 General tax return, the amount will go on line 340. If you have an amount towards cultural property or ecologically sensitive land, that will go on line 342. When using TurboTax, all you need to do is enter the information about your donation and we’ll do the rest for you.

Make the whole process run smoothly by holding onto your proof of payment and make sure your receipt says “Official receipt for income tax purposes.”

Happy New Year and Best Wishes for 2013!
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