It’s tax season. Again. Already. Time does not stand still for any of us, does it?!
One of the things many of us don’t know but should, is that Canada is one of the best places in the world to donate to charity when it comes to benefiting your tax return. Did you know you can claim up to 75% of your net income as charitable donations (of course with your Official Tax Receipts!), benefiting your tax return? Crazy hey? There aren’t a whole lot of us who fit in that category, but the message is clear: Canadians who give reap the rewards!
Not too many of us get excited about doing our taxes every year, however it is up to us to educate ourselves and be knowledgeable as far as what we can and can’t claim. We don’t have to be experts but it sure helps to have understanding throughout the year when you’re deciding what receipts to keep, where to file them and how they affect us at year end!
The Canadian Revenue Agency has some great resources to learn how charitable giving impacts your tax return, tips on what to watch for when donating, a charitable organization listing so you know that you’re giving to a recognized charity, and the rules around how to work it all out on your return. It has also implemented webinars for us to learn more about charitable giving, their next one being scheduled for March 12th. Find the details here: Charities Webinar Registration.
You can find another valuable resource here: Claiming Charitable Tax Credits. It answers questions like: 1) Is a charity required to issue an official donation receipt? 2) If the charitable status of a charity to which I have recently made a donation has been revoked, can I still claim my tax credit? 3) Do I have to claim donations the same year I make them? And several more often asked questions.
The CBC does a great job every year of providing answers to our tax questions. Here is their latest article called 10 Myths About Taxes that Mislead Canadians.
One more place you can get good information is at http://www.taxtips.ca.
Some of us may already be done our returns for the year, but many of us haven’t (ahem…that would be me!). Our generosity is clearly acknowledged by our Government. If they see the value in charity and reward us accordingly, that’s a good thing for our Country all around!
Image courtesy of hywards at FreeDigitalPhotos.net