Enhanced Charitable Tax Credit
Currently, 82 per cent of all financial donations come from just 25 per cent of the donors. That 25 per cent needs to grow! The increased charitable tax credit, announced in Budget 2007, will give Albertans a chance to show their giving spirit.
Alberta's tax credit has increased by more than 60 per cent for total annual charitable donations over $200. Including the federal tax credit, Albertans will now receive a 50-cent tax credit for every dollar donated over the $200 threshold. This includes donations made on or after January 1, 2007.
How do you take advantage of this new enhanced tax credit? Simply claim your total charitable donations on your next income tax return.
Everyone has their favourite cause or charity to support - whether it's a cause that has affected family members or friends, they are close to our hearts. The next time you decide to donate to your charity of choice, remember this new enhanced charitable tax credit. Not only will the tax credit put more money back in your pocket, it will put money in the pockets of worthy charities across Alberta.
How Does it Work?
Here's an example of how the enhanced charitable tax credit works.
Donation |
Previous Credits ($ dollars) |
New Credits ($ dollars) |
||||
|---|---|---|---|---|---|---|
| First $200 | Over $200 | Total | First $200 | Over $200 | Total | |
$500 |
||||||
Provincial |
20 |
38 |
58 |
20 |
63 |
83 |
Federal |
31 |
87 |
118 |
31 |
87 |
118 |
176 |
201 |
|||||
$1,000 |
||||||
Provincial |
20 |
102 |
122 |
20 |
168 |
188 |
Federal |
31 |
232 |
263 |
31 |
232 |
263 |
385 |
451 |
|||||
$5,000 |
||||||
Provincial |
20 |
612 |
632 |
20 |
1,008 |
1,028 |
Federal |
31 |
1,392 |
1422 |
31 |
1,392 |
1422 |
2,054 |
2,450 |
|||||
