If You Made Charitable Donations This Year, Here’s What You Need To Know:
- You can claim 5 years’ charitable donations all at once
- You can carry forward the charitable donations up to 5 years if there’s not enough taxable income to be deducted in the current year
- You can only claim charitable donations on taxable income. It is a non-refundable credit
- You can get your money back for up to 46% of the payment made to the charity
- You can claim for the benefit of charitable donations in Canada even if the donation was made to the US. But you should have the income generated within the US in the same year
- In order to maximize the overall income tax credits available, one spouse should claim all the family charitable donations
- The receipt from the charity, you should make sure it contains the charity number (9 digits, ends with RR0001)
- You can only receive the benefit if the donation was made to a registered Canadian charity organization. There is no tax relief for donations associated with foreign charitable organizations.
- If you receive a letter from CRA saying that they are reviewing my charitable donations, all you have to do is to make a photocopy of the letter and the receipt from the charity organization and email CRA back.
Muhammad Nasrullah,CPA, CGA, LPA
Chartered Professional Accountant
Licensed Public Accountant
206A – 2365 Finch Ave. West North York, ON. M9M 2W8
Tel: (1) 416-748-0817 ext 101 Fax:(1) 416-748-6814
www.nasrullahcga.com E-mail: firstname.lastname@example.org