Federal Election, Eh!? On September 20, 2021, Canadians will be going to the voting polls to elect members of the House of Commons to the Canadian Parliament. Did you know that if you contribute or donate to a registered Canadian federal political party or to a candidate for election to the House of Commons, you can get a tax credit which is deducted from your federal tax payable!? The maximum federal credit that can be given is $650 (on contributions of $1,275 or more).
There are also separate tax credits for both federal and provincial or territorial political contributions. There is a federal credit for federal political contributions, and there is a provincial credit for provincial political contributions. For example, in Ontario the amount of the credit depends on how much you give. The maximum credit is $1,423. Note that if you contribute to a provincial political party, your donation credit is only applicable to provincial tax calculations.
Married or common-law? The contribution can be claimed by either spouse (or common-law partner), but one contribution receipt cannot be split between spouses. However, in some provinces the receipt must be issued under both spouses’ names. Therefore, it can be an opportunity for tax saving strategies between spouses.
To claim political donations, be sure to save all official tax receipts for proof. And you do not have to send the official donation receipts with your tax return. However, keep them in case you are asked for them later by the tax authority.
Any questions? Please contact me directly for more information. And please GO VOTE on September 20!
BY CLEANFOREST.CO