# First-Time Donor's Super Credit



## leeder (Jan 28, 2012)

I sort of understand that the First-Time Donor's Super Credit (FDSC) enhances the typical charitable donations tax credit. My understanding is that, to qualify, one must either not have made a charitable donation before or haven't made a tax credited donation since 2007. The donations must be on or after March 21, 2013.

I've been making donations to charities in the last 3 years. I've saved up the donations to be used for tax credit later on (say 2015). How does it work then if I decide to use my donations in a couple years, esp for those that are 'ineligible' for the super credit? Would these be calculated separately?


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## Eclectic12 (Oct 20, 2010)

I haven't looked into it as I donate every year.

I was under the impression that the FDSC was something extra to apply for, if you qualify, as a one shot deal. So if you've used the FDSC already and then use the unclaimed donations in say 2015 - the calculations should be the same as has been done before the FDSC came into being.

From this link:
http://www.cra-arc.gc.ca/gncy/bdgt/2013/qa01-eng.html



> As the FDSC is a temporary credit, you can only claim it once from the 2013 to 2017 taxation years ...
> For taxation years from 2013 to 2017, a new line will be added to Schedule 9, Donations and Gifts to identify the eligible portion of the charitable donations that you have claimed that are donations of money.


So it sounds like everything stays the same except that there's an additional line to identify that you want to claim the FDSC plus how much is eligible.


Bear in mind that the FDSC seems to be applied to a maximum of $1K of the total amount donated.

Cheers


*P.S.*

Then too, this G&M article says it's $1K across both spouses, must be cash (i.e. not property) & be made in the same year as the FDSC is claimed (i.e. can't use previous year donations that have not been claimed yet).
http://www.theglobeandmail.com/glob...en-tax-incentive-for-charity/article13796315/


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## WillyA (Apr 14, 2011)

It says "For the 2013 taxation year, an individual will be considered a first-time donor if neither the individual nor the individual’s spouse or common-law partner has claimed the CDTC in any of the five preceding tax years" as per here http://www.cra-arc.gc.ca/gncy/bdgt/2013/qa01-eng.html 
They have a calculator here as well http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/clmng1b2-eng.html if you are ineligible I assume the calculation would be just the normal charitable deductions calculation I use a software for my taxes and it usually figures all these things out as long as I answer the questions correctly


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## Guban (Jul 5, 2011)

leeder said:


> I've been making donations to charities in the last 3 years. I've saved up the donations to be used for tax credit later on (say 2015). How does it work then if I decide to use my donations in a couple years, esp for those that are 'ineligible' for the super credit? Would these be calculated separately?


Sounds like they will modify schedule 9 to break down the eligible and intelligible amounts into separate calculations.


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## Eclectic12 (Oct 20, 2010)

Guban said:


> Sounds like they will modify schedule 9 to break down the eligible and intelligible amounts into separate calculations.


 ... we'll know soon enough as the the tax programs & tax spreadsheets for 2013 start to show up. It's an easy change for the gov't to do.


Cheers


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## Guban (Jul 5, 2011)

Eclectic12 said:


> ... we'll know soon enough as the the tax programs & tax spreadsheets for 2013 start to show up. It's an easy change for the gov't to do.
> 
> Cheers


I got the following quote from CRA that supports what I wrote. 
From: http://www.cra-arc.gc.ca/gncy/bdgt/2013/qa01-eng.html

"Q6. Do all of my donations qualify for the FDSC? 
A6. No. Only donations of money that are made after March 20, 2013 will qualify for the FDSC. For taxation years from 2013 to 2017, a new line will be added to Schedule 9, Donations and Gifts to identify the eligible portion of the charitable donations that you have claimed that are donations of money."


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## Eclectic12 (Oct 20, 2010)

Guban said:


> I got the following quote from CRA that supports what I wrote ...


Hmmm ... I believe it's the same link as well as a similar quote to what I used up thread.

The reason I'm hedging my statements is that for other programs in the past, when CRA updated the tax forms - what ended up being implemented was either a variation or a completely different way of doing the same calculation.


Cheers


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## leeder (Jan 28, 2012)

WillyA said:


> It says "For the 2013 taxation year, an individual will be considered a first-time donor if neither the individual nor the individual’s spouse or common-law partner has claimed the CDTC in any of the five preceding tax years"


Seems to me the best bet is to gather all the donation slips and use it all in one year, whether it is this year or sometime in 2017 taxation year.


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## Guban (Jul 5, 2011)

leeder said:


> Seems to me the best bet is to gather all the donation slips and use it all in one year, whether it is this year or sometime in 2017 taxation year.


Generally, donations are more effective when bunched together as the credit for donations over $200 is greater than under that amount. 

However, the FSDC is capped at $1,000. So saving receipts past this amount does not increase the super credit.


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## Eclectic12 (Oct 20, 2010)

Guban said:


> Generally, donations are more effective when bunched together as the credit for donations over $200 is greater than under that amount.


Good point ... 



Guban said:


> ... However, the FSDC is capped at $1,000. So saving receipts past this amount does not increase the super credit.


Which if one has not already been holding back charitable donation receipts for something like five years - raises the question of whether delaying using the refund money is worth the "extra" of the super credit.


Cheers


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## PoolAndRapid (Dec 3, 2013)

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