New special tax credit could help boost gifts to charity
(NC)—December is one of the busiest months for donating to charities and this year your generosity could earn you a special tax credit.
You may be eligible for the First-Time Donor's Super Credit (FDSC) if neither you nor your spouse or common-law partner has claimed the charitable donations tax credit in the five previous tax years.
This could bring you real benefits when you donate to your favourite good cause whether it's a hospital, an animal shelter, or a human rights charity like Amnesty International.
Potentially you could add an additional 25% to your federal charitable donations tax credits for gifts of money up to $1,000. (The new credit applies to monetary gifts only, not gifts of property like investments.)
It works like this: The federal charitable donations tax credit for gifts up to $200 is 15% and the new additional 25% FDSC brings the total credit up to 40%. For the value of a gift between $200 and $1,000, the 29% charitable donations tax credit and the additional 25% FDSC brings the total credit to 54%.
So a $600 gift might earn a credit of $296 (40% x $200 plus 54% x $400).
On top of that, you may qualify for additional provincial tax credits.
Note that you can only claim the FDSC once during the 2013 to 2017 tax years.
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