Get More From Charitable Donations with First-Time Donor’s Super Credit

August 26, 2013 Published by
Post Categories: Tax Accounting

Donor Super CreditOur tax preparation clients in Toronto have asked us how the new First-Time Donor’s Super Credit works exactly.

According to Canada Revenue Agency:

“For donations made after March 20, 2013, qualifying first time donors may receive an additional federal tax credit of 25% on the first $1,000 of monetary donations, over and above the amounts provided in the first calculation below.“

For example:

For $500 of charitable donations in 2013, the first-time donor’s FDSC and CDTC would be:

First $200 claimed:$200 x 15%$30
Claimed in excess of $200:$300 x 29%$87
First-Time Donor’s Super Credit:$500 x 25%$125
Total FDSC and CDTC:$242


Or if you make $700 of charitable donations in 2013 and $300 of the donations are donations of money, the FDSC and CDTC would be:

First $200 claimed:$200 x 15%$30
Charitable in excess of $200:$500 x 29%$145
First-Time Donor’s Super Credit:$300 x 25%$75
Total FDSC and CDTC:$250


You can also use an online calculator from CRA’s website to get an idea of how much in credits you can expect.

If you have any questions about tax accounting in Toronto, please feel free to contact our office at any time.