You can donate any time of the year in 2019 up to December 31 if you want to claim your charitable contributions on your 2019 tax return. You do not have to claim all of your donations in one tax year, however. You can spread them across the next five years of tax returns if you so desire.
The timing of your donation claim is up to you. You may want to consult with your financial advisor to gain some insight on the best way to pace your claims. Ultimately, you want to do what’s best for your financial situation.
You can donate to any party or organization you want to help. However, you have to ensure that the party is on the list of eligible charities if you want to receive the credit on your tax return. The Canda Revenue Agency lists such entities.
The donation credit is limited to 75 percent of your annual income.
You will receive a federal credit and a provincial credit, but you must donate more than $200 to receive such a credit. Your federal credit has two parts to it. The first credit will be equal to 15 percent of the first $200. The second credit will be equal to 29 percent of any amount you donate over $200. Thus you will receive a $262 federal tax credit if you donate $1,000.
Your provincial credit has two parts to it, as well, and it varies depending on where you reside. For example, Ontario’s rate was 5.05 percent for the first $200 in 2017. The rate was 11.16 percent for amounts over $200.
First Time Donor’s Super Credit
If this is your first time donating, you can also receive the First Time Donor’s Super Credit (FDSC). You can receive it if you donated after 2013, and you have not claimed the charity credit ever, or at least since 2007. It will award you an additional 25 percent of an amount up to $1,000.
Now that you understand the benefits of charitable donations, you can donate with the highest level of pride and confidence. As an Assante Wealth Management Ltd. financial advisor I find anyone curious to learn more on the subject to contact me to find out more about the processes, benefits and the many ways you can leverage charitable donations to improve your life quality and financial wealth.