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Who May Claim The Credit...
To receive the maximum
benefit of the two-tiered credit it may be beneficial to combine
the contributions of one spouse with the other. CRA’s
administrative policy is to allow either spouse to claim the
donation regardless of whose name is on the receipt. It is most
beneficial to claim the donations on the higher-income spouse’s
return. Contribution Limits The most you may claim in a year is
75%* of your net income. If you have receipts which exceed this
amount, you may save the receipts and carry forward the
contributions for up to five years. *There are special rules
which relate to this limit in the year of death. Contribution
Carry forward To benefit from the two-tiered credit, you may
choose to save your receipts until they exceed $200. CRA allows
you to claim the last five years of donations not previously
claimed.
Types of Contributions Donations to charities make take
several forms. Cash is always welcome but gifts of property
(such as publicly traded stocks, artwork, real estate), life
insurance and annuities may be donated. Gifts may be made in
your lifetime or through your will. The benefits of the
contribution depends on the type of gift, the timing of the
donation and the nature of the charitable organization.
To make the most of your donation dollars in
excess of $200 you may want to double up your contributions in
one year then skip the next. This type of planned giving
maximizes your tax refund; the reduced tax rate on the first
$200 of contributions is applied to your tax return every other
year. |
