Charity begins at home. We’ve all heard this saying. Charity comes in many forms like helping elderly neighbors, or volunteering for local charities and donating to worthy foundations. Charity is an essential part of our society, and it’s something that affects us all. We either give our time and/or resources, or have been on the receiving end when times are tough.
Charitable actions allow you to reap social, mental and physical benefits, all while giving back to those in need. If you have donated to registered charities across 2021, don’t forget to keep a record of these donations you have made in the past year!
The deadline for filing your personal tax return is creeping up and if you did donate, you should be aware of some key points:
- You can receive a 15% tax credit on your first $200 donated, and 29% tax credit on any amounts extra above this.
- If you’re a first-time donor, there is an additional super tax credit of 25% on up to $1K of donations.
If you are at the highest tax bracket, the following applies:
- 15% on the first $200
- 33% of the lesser of the following amounts:
- The amount of donations above the first $200
- The taxable income exceeding the highest tax bracket
- 29% of the total donations above the first $200 and non-eligible for the donation tax credit
- Donation amount is limited to 75% of the taxpayer’s net income
Remember! Only donations to registered charities will be recognized for claiming donation credits.
Now – why not use this new-found knowledge and spread the word to your friends and family. Like we said – it all begins at home!
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Rise CPA provides professional accounting, tax and business advice to help you make the right decisions at the right time. Since 1979, we’ve been helping clients create businesses and lifestyles they envision by delivering expert insights and financial guidance. At Rise, we excel at advising business owners and their families in a caring and personal way. Our services cover a wide range of Tax Planning, Auditing, Accounting, Estate Planning, and Business Advisory. Please call (604) 936-4377 or use the online contact form to book an appointment with one of our accounting professionals.
