The 2013 Budget introduced the First-Time Donor's Super Credit (FDSC) as a way to encourage Canadians to make charitable donations. This credit provides taxpayers with an extra 25% donation tax credit on monetary donations up to $1,000 in addition to the basic federal and provincial credit on qualifying donations to registered charities.
Note: Monetary donations are those that are made:
- In cash
- By cheque, credit card, or money order or
- By wire transfer payment or electronic funds transfer
If you’ve never claimed the charitable donation tax credit or you haven’t claimed it since 2007, you can claim the FDSC. Keep in mind, the FDSC can only be claimed once between the years 2013 and 2017.
Tax Tip: The rate used to calculate your charitable donation tax credit is higher for amounts over $200, so it might be better for you or your spouse to hold your donations and claim them all at once to get a higher credit. Remember, if you plan to do this, the final tax year you can claim the FDSC is 2017.
Example:
Suppose an eligible first-time donor claims $500 of charitable donations in 2016. The donor’s FDSC and charitable donation tax credit would be calculated as follows:
|
First $200 of charitable donations claimed: |
$200 x 15% = |
$30 |
|
Charitable donations claimed in excess of $200: |
$300 x 33% = |
$99 |
|
First-Time Donor’s Super Credit: |
$500 x 25% = |
$125 |
|
Total FDSC and charitable donation tax credit: |
$254 |
|
Note: H&R Block’s tax software will automatically calculate your credit amount. The example above is for demonstrative purposes only.
Where do I claim this?
- Under the PREPARE tab, click the OTHER icon. You'll find yourself here:
- Under the CHARITABLE AND POLITICAL CONTRIBUTION heading, select the checkbox labelled Donations and gifts (Schedule 9) and click Continue.
- When you arrive at the page for Donations and gifts, enter the amount of gifts of money after March 20, 2013 into the designated field of the tax software.
