Many Canadians may not know that in 2013 the Canada Revenue Agency (CRA) had included a special tax credit called the First-Time Donor’s Super Credit in the budget. In recent reports, the CRA has stated that the take-rate of the credit has been lower than expected, so we are hoping to encourage Canadians to donate by explaining the benefits.
Here are the basics…
Some additional points to note:
- For the purposes of the FDSC, you will be considered a “first-time donor” if neither you nor your spouse or common-law partner (if you have one) has claimed and been allowed a charitable donations tax credit for any year after 2007.
- Only donations of money (not stocks, or other donations) that are made after March 20, 2013 will qualify for the FDSC.
- The FDSC is a temporary tax credit only available for taxation years from 2013 to 2017.
- The FSDC, and all charitable donation credits are non-refundable; meaning that you only benefit from the credit if you have tax owing for the year.
Want to know more? Watch this video for more details:
If you have any questions about the First-Time Donor’s Super Credit or any other tax credits, please feel free to contact us.