Political Contribution Tax Credit
POLITICAL CONTRIBUTION TAX CREDIT
Federal political contributions are eligible for a federal tax credit. An individual taxpayer can receive up to 75% of the first $400 contribution as credit, followed by 50% of any amount between $400 and $750 and 33.33% of amounts in the range of $750 to $1,275. The maximum contribution amount you can claim any year is $1,275 which translates into a maximum tax credit of $650.
Provincial political contributions are eligible for provincial tax credits
In Ontario, an individual taxpayer on their 2023 T1 personal tax return can receive up to 75% of the first $465 contribution as credit, followed by 50% of any amount between $465 and $1,552 and 33.33% of amounts in the range of $1,552 and $3,532. The maximum contribution amount you can claim is $3,532 which translates into a maximum credit of $1,552.
To claim these credits, you must save all official political contribution receipts as supporting documents. The eligible amount is the fair market value of the contributions without any advantages that you might receive by making this contribution, such as meals (dinner).
This is a refundable tax credit and can be claimed by each spouse provided you have separate receipts. If you plan to contribute more than $465, it is better if you split the contributions such that each of you has a separate receipt. This way, each can claim tax credits at the higher rate. Remember, you need to keep all your receipts and documents for six years.
The above information is of a general nature only and should not be relied upon for specific situations. Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.
