# Charitable Donations - claim them now?



## jumbalaya (Jan 17, 2013)

I know they can be carried forward 5 years (i.e. donate in 2011, claim in 2016)

I donated a significant amount this year - should I claim it now? I don't quite understand why I should delay, since I expect a tax refund every year.


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## Sampson (Apr 3, 2009)

Do you have an estimate of your income over the next few years? Some people expect or know they will get significant raises that push them into the higher marginal tax brackets.

Delaying the deduction for Charitable Donations could mean a larger 'return' on the donation.


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## none (Jan 15, 2013)

http://www.taxtips.ca/filing/donations/tax-credit-rates-2013.htm


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## jumbalaya (Jan 17, 2013)

my donations for this year alone clear 200 by a long shot.

i will be getting raises in the future.

say I save them all for 5 years from now... is there some way where I claim "too much" and get no benefit from it?


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## Eclectic12 (Oct 20, 2010)

jumbalaya said:


> ... say I save them all for 5 years from now... is there some way where I claim "too much" and get no benefit from it?


From a single year point of view, the limit is 75% of one's net income.


The main risks I can think of, off hand are:

a) losing track of the donations and/or receipts so that one forgets to claim them.

b) changes to the tax rates.


Cheers


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## none (Jan 15, 2013)

Charitable donations are tax credits and not tax deductions and are therefore independent of income.

THe only reason to save them up is if you are around the $200 point - saving them up so more is above the $200 sometimes makes it worth while.

if you are well above that just claim it and be done with it.


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## jumbalaya (Jan 17, 2013)

they are non-refundable tax credits though, so they can't increase your tax refund? sorry for my ignorance.

i keep track of everything.


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## none (Jan 15, 2013)

They are tax credits - yes you get a refund but that refund is income independent. The only thing that affects it is the $200 threshold.

I think it would be helpful if you looked at this:
http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/menu-eng.html


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## jumbalaya (Jan 17, 2013)

thanks for the link, i've seen it before. this portion is the one i'm concerned about: "This is a non-refundable tax credit. As such, it can only be used to reduce tax owed; if you don't owe any tax, you don't get a refund."

seeing as I get refunds every year... if I pile 5 years worth of donations onto one tax return, it seems like it will provide no benefits?


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## Spudd (Oct 11, 2011)

But you still owe tax, your refund is just the portion you over-paid throughout the year on your paychecks. So your refund will be bigger. If you made <$10k per year, in that case it would have no benefit to you.


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## jumbalaya (Jan 17, 2013)

Spudd said:


> But you still owe tax, your refund is just the portion you over-paid throughout the year on your paychecks. So your refund will be bigger. If you made <$10k per year, in that case it would have no benefit to you.


spudd comes through again. so I just have to make sure I claim enough so that the benefit matches up to my taxes owed, not more - the excess will be for naught... thank you, ma'am.


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