I often get asked, “Mr. Funny Accountant (sometimes I even get a ‘Sir’ at the end), how do I get some cash back from all the donations I make throughout the year?”
Easy one! It’s as simple as claiming those donation receipts on your personal tax return (for those of you donating personally and not through a Corporation or a Trust – a completely different discussion). The rule of thumb is the following:
- For the first $200 you donate, you’ll get 15% of it back in cash on your tax return.
- For anything above that first $200, you’ll get 29% cash back. For example, if you donate a total of $700 during the year, you’ll get back 15% of $200 (or $30) plus 29% of the excess $500 (or $145) for a total of $175 cash!
Since all Canadians were born equal (or so the federal Government says!), this is a federal tax credit and is therefore equal for all Canadians. It’s just an additional incentive created to encourage Canadians to give to those less fortunate than ourselves and to causes for which we care.
Which brings us to Movember.
Created in Australia 9 years ago, it has blossomed into a worldwide phenomenon in which moustaches are grown during the month of November to raise awareness for men’s health issues, including prostate cancer (and now other cancers). As of 2 years ago, Canadians are the largest contributors to Movember charities…so good for us, ay???!!! I’d like to give a quick shout out to a fellow Twitter Dad blogger @CanadianDadBlog who’s got a Canadian Dads Movember Team looking to match or exceed the $12,000 they raised last year. Good luck Chris!
Now get out there, get those personal donations above $200 and get that to that 29% cash back level after filing your taxes in April! Even my baby is helping out!
Funny Fuzzy Accountant
Don’t forget to follow me on Twitter if you like what you read! And as always, if you have tax questions, need advice on your personal taxes, corporate taxes or anything else accounting or business related, please contact The Funny Accountant/President of MK & Associates at email@example.com
Also, for a witty and insightful read, check out the wifey’s blog. It’s funny and good.