Get ready for a bigger charitable tax credit

Depending on your income you may receive a 33% tax credit in 2016

  0 Premium content image

by

From the April 2016 issue of the magazine.

  0 Premium content image
charitable giving

(Peter Dazeley/Getty Images)

The Liberals’ new income tax bracket has made charitable giving extra confusing. For the 2015 tax year, do-gooders still get a 15% credit on the first $200 of total donations, and everything above that gets a 29% credit. But starting in 2016, you’ll receive a 33% tax credit on a part of your donations if your income exceeds $200,000. Take someone earning $203,000 who donates $10,000: She’ll get a 15% credit on the first $200, 29% on the next $6,800 and 33% on the final $3,000 (the amount above the $200,000 income mark).

The bottom line: You may be able to get a bigger charitable tax credit in 2016, depending on your income level.

More tax tips here.

Leave a comment

Your email address will not be published. Required fields are marked *