A great idea for giving back to the larger community is by investing your money into charity. By doing that, you are supporting a worthy cause and you are receiving income tax credits as well. We want to show you some of the great tips that you can use for your Canadian taxes, so that
· You have to remember that charitable donations made to the registered charities qualify for income tax credits. They are usually called tax deductibles and they qualify for a non-refundable tax credit, but not a tax deduction.
· Don’t throw away your receipts – you will need them to paper file your income tax return. You will need to save them for electronic filing – the CRA may request them for later.
· Remember that the $200 amount qualifies for a tax credit at the lowest tax rate and the amount above $200 qualifies for a tax credit at the highest tax rate.
· You are allowed to claim your spouse/common-law partner’s donations. Maximize the credit so that you can lump the donations together, so long as they are paying their taxes.
· You can take advantage of the higher credit over $200 when some or all of your donations may be carried forward for over 5 years. You should ensure that you carry forward any donations over the 75% net income limit.
· Ensure that you make claim to the donations made through your workplace and to the donations made through your pension or other income.
· You should have a receipt from the charity showing the “fair market value” of the gift, so that you can get a tax credit for in-kind donations.
· Be careful that you run the risk of having all your donations disallowed, because there re people who donate to charities and are tempter to receive credit for more than they donated.
· If you are an artist who is donating or you have donated cultural and ecological gifts, then special rules may apply to you.
If you are looking for a professional accountant to do your taxes in Canada, then you have come to the right place as we are tax experts in Kingston Ontario and we can help process your income tax return quickly while maximizing the tax return you will receive. Our decades of income tax filing experience can help you with your personal and business taxes in Kingston. Remove the headache from taxes and let our skilled tax consultants handle your accounting and bookkeeping to process smooth tax returns for you. Precise, Accurate Instant Tax Refunds Since 2002.
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