Pay It Forward

Money is important, we all want to keep as much as we can to take care of ourselves and our families, but for those who also feel a deep social responsibility, there’s good news this tax season.

If you want to make a difference in the world around you, giving some much needed cash to a worthy organization is a great way….and now Revenue Canada is going to give you a little help too. Yes that’s right, they’re going to help YOU out. If you’ve not donated to a charity in the past 5 years, you’ll be eligible for a temporary supplement to the existing non-refundable tax credit for charitable donations by individuals. The new super credit can be claimed once from the 2013 to 2017 taxation years.

This new credit effectively adds 25% to the rates used in the calculation of the CDTC for up to $1,000 of monetary donations. As a result, a first-time donor will be allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations over $200 but not exceeding $1,000.

A few things you need to know:

  • You can only claim it once from the 2013 to 2017 taxation years, and you’re considered a first-time donor if neither you nor your spouse or common-law partner has claimed the CDTC in any of the five preceding tax years.
  • As a first-time donor, the FDSC, along with the corresponding CDTC, may be shared by you and your spouse or common-law partner in a particular taxation year. However, the total amount of donations that may be claimed for the FDSC by both individuals cannot exceed $1,000.
  • Only donations of money that are made after March 20, 2013 will qualify for the FDSC. For taxation years from 2013 to 2017, a new line will be added to Schedule 9, Donations and Gifts to identify the eligible portion of the charitable donations that you have claimed that are donations of money.

So now you have a chance to go out and really do some good, give a charity a boost, help a quality foundation with their funding and feel good while doing it. The fact you’ll get an added credit on your taxes sure doesn’t hurt either. Now we can keep a little more of our hard earned cash, while paying it forward and helping make the world a better place. Pretty neat stuff indeed!

At Matheson Carson and Associates we’re here to help you navigate through tax time. Give our friendly staff a call at 514-695-4018 or drop in to our office, conveniently located at 24 Canvin, Kirkland, Quebec.

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