Give more to charities; get more back20 December 2016
FREDERICTON (GNB) – During the holiday season, New Brunswickers are encouraged to donate to their favourite charities.
“I am proud of the generous spirit of New Brunswickers during the holidays and also throughout the year,” said Finance Minister Cathy Rogers. “Your government is committed to helping the most vulnerable, and individuals who share these values set a positive example for others.”
For registered charities, individuals may take advantage of the charitable donations tax credit that could reduce their income tax.
Since this tax credit can only be used to reduce tax, those individuals who do not have tax payable cannot benefit from the charitable tax credit in the current year. However, donations that cannot be used in the current year may be carried forward and claimed in any of the next five years.
The following example shows how the tax credit works if a donor gives $500 in one year to one or more registered charities.
- For the first $200, the provincial credit is 9.68 per cent and the federal non-refundable credit is 15 per cent, resulting in a total combined credit of 24.68 per cent.
- For each dollar above the $200 threshold, the provincial credit jumps to 17.95 per cent and the federal credit to 29 per cent, resulting in a total combined credit of 46.95 per cent.
For more information, visit the Canada Revenue Agency to use the charitable donation tax credit calculator, which will instantly calculate your total tax credit based on the amount of the donation and province of residence.