Tax Tip: Claiming a Credit for Federal Political Contributions

TurboTax Canada

October 15, 2020 | 2 Min Read

Federal political contributions are donations that were made to a registered federal political party or a candidate for election to the House of Commons. You can receive up to 75 percent of your first $400 of donation as credit, followed by 50 percent of any amount between $400 and $750 and 33.3 percent of amounts over $750. The maximum contribution amount you can claim is $1,275 which translates into a maximum credit of $650.

To claim these amounts, save all official tax donation receipts for proof. The eligible amount is the fair market value of the contributions without any advantages that you might receive by making this contribution.

Enter the entire amount of your or your spouse’s/common law’s contributions on line 40900 of your Income Tax and Benefit Return. Use the Federal Worksheet to calculate your tax credit, and use this calculated amount to claim your credit on line 41000. Regardless of how much contribution you claim on line 40900, the credit you can deduct on line 41000 cannot exceed the maximum limit of $650.

Note that if you contribute to a provincial political party, your donation credit is only applicable to provincial calculations:

TurboTax products offer an easy step-by-step guide to claim your political contributions and the applicable provincial credits. Consider TurboTax Live Assist & Review if you need further guidance, and get unlimited help and advice as you do your taxes, plus a final review before you file. Or, choose TurboTax Live Full Service^* and have one of our tax experts do your return from start to finish.

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