Schedule 9 Tax Form: Donations & Gifts in Canada
What is the CRA Schedule 9 tax form?
You can use it to claim a donation and gift tax exemption.
What kind of charitable donations and gifts can I use?
The most common types are amounts given to registered charities, who will give you a tax receipt. You may also have donation amounts on your T4, T4A, T3, T5013 or T5013A slips or on partnership financial statements.
What other kind of donations and gifts are there?
The gift tax allowance is used for money, property, land, shares, stocks, cultural and ecological gifts, etc. donated for example to a registered charity, an institution, a municipality, a province, a territory, or the government of Canada. They do not include political contributions.
Can my spouse and I put our donations together?
You sure can, and it will be advantageous to do so. When you file your return, observe the impact on your refund/balance of one spouse using all the donations, then the other. It will help you decide who should claim the amounts.
What is the impact of donations and gifts on the income tax I pay?
Donations and gifts are non-refundable tax credits. This means you must claim your other credits first. If that amount is sufficient to bring your tax payable to zero, you will not be able to use your charitable donations to create or increase your tax refund. If you still have tax payable, you will be able to use all or a portion of the donation amount. You can carry forward unused donations for up to 5 years but remember that donations can be claimed only once.
Is there a maximum I can claim?
Your total donations can be up to 75% of your net income.