It’s that time of year again when most of us are finishing (or, in some cases, just starting) our taxes. Obviously, one of the nicest things to see on your return is a credit for anything, from RSP contributions to sports programs for kids to charitable giving.
That’s why when the 2013 federal budget was released earlier this month, it was exciting to learn of a new tax credit that will take effect in the 2013 tax year. Meant to encourage gifts from first-time donors or people who haven’t claimed a charitable donation in the last five years, the First-Time Donor’s Super Credit adds an extra 25% over and above the regular tax credit for charitable gifts. Donations up to $200 receive a 40% tax credit. Donations between $201 and $1,000 receive a 54% tax credit. That means more money back on your tax return.
Here’s how it breaks down:
|Your gift||Total First-Time Donor’s Super Credit||Actual cost to you, after taxes|
With credits like that, it’s a “super” time to give!
If you want to calculate the First-Time Donor’s Super Credit for a gift you’re considering, check out this helpful calculator.