How to figure out Tax Credits

How do I receive “charitable tax credits”? 

Start by using the Tax Calculator; once you’ve figured out the ideal donation to make in exchange for tax-credits click here to make your donation. You will receive an email confirmation, and will be able to report this while filing your taxes. 

What are the benefits of making a year-end donation?

Depending on your income-bracket and other tax conditions such as province, marital status, etc. most Canadian residents will benefit from making a year-end (“charitable tax credit”) donation because it offsets the total amount owing come tax-season.

Can you give me an example of how it works?

One way to consider this is that if you owed $1500 in taxes, this money will go to the Government at large to be spent on federal and provincial incentives. If you had instead decided to make a charitable donation of ~$3500 to the Pembroke Regional Hospital Foundation, you would have approximately $1500 in tax credits (as an Ontario resident*) and owe almost nothing in taxes.  The benefit is that you are keeping your money, and tax dollars close to home.

*How accurate is this tax calculator?

The CanadaHelps.org Tax Calculator lets you estimate the amount of the non-refundable tax credit you will receive for monetary donations to registered Canadian charities claimed on your last income tax return based on your province or territory of residence and sum of donations in the last taxable year. It does not take into account all possible tax situations.

As a non-refundable tax credit, it can only be used to reduce tax owed; if you don’t owe any tax, you don’t get a refund. Other credits or restrictions may also apply, such as those related to your total income and additional considerations for residents of Quebec and Alberta. Please consult your tax or financial advisor for more specific details.