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Discussion Starter #1
Here's a small tip that I'm doing at work.

I work for the BC government and they have a program where I have money taken off my paycheck each pay period which goes to the charity of my choice. Great program.

I started thinking that maybe this wasn't the most efficient way to give to charity from a taxation standpoint. Instead what I've decided to do is rather than give $12 each pay check ongoing, I will instead give $60 each pay check for one year and then give nothing at all for the next 4. The amounts at the end of 5 years are mathematically equivalent.

The math works out that this way I will get an additional ~$200 tax refund b/c the combined BC and fed tax credit on the first $200 is 20.06% and gifts above that are given a credit of 43.70% up to a maximum of 75% of your income.

Anyway, I just thought this was a fun way to give to charity and save on your taxes.

Happy giving!
 

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Yes the credit for donations up to $200 is 15% federally, and then it increases to 29% for any amount over $200 to encourage giving. Best to save your slips for several years and then claim them all at once (if you remember).
IIRC, the limit is going back 5 years.
 

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The con to saving them up until after 5 years is that you are giving the government a loan for those years. This way you get your money back immediately. $200 now is worth more than $200 5 years from now. $262 after 4 years assuming 7% return.

Anyway, counting pennies really.
 
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