Comments on: Charitable Donation Tax Credit – Part 1 (How it Works) http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm Building Wealth through Saving and Investing Sat, 21 Nov 2009 03:00:37 -0500 http://wordpress.org/?v=abc hourly 1 By: basketbal coach http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-71940 basketbal coach Fri, 27 Feb 2009 00:33:01 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-71940 Hi - just a not - I finished my tax return and your charitable rates table is incorrect for BC, The low rate was 15% on the first 200$ and only 29% on the rest of my donation. Hi – just a not – I finished my tax return and your charitable rates table is incorrect for BC, The low rate was 15% on the first 200$ and only 29% on the rest of my donation.

]]> By: 8 Fundamental Money Lessons for Kids | Million Dollar Journey http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-67810 8 Fundamental Money Lessons for Kids | Million Dollar Journey Wed, 21 Jan 2009 11:30:37 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-67810 [...] you give to charity, talk to you kids about why you chose that particular charity. If you sponsor a child through [...]

[...] you give to charity, talk to you kids about why you chose that particular charity. If you sponsor a child through [...]

]]> By: Using Flow Through Shares to Maximize Your Charitable Donations | Million Dollar Journey http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-66856 Using Flow Through Shares to Maximize Your Charitable Donations | Million Dollar Journey Mon, 12 Jan 2009 11:30:23 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-66856 [...] you give to charity or church on a regular or substantial basis ($5,000 or more per year) the following is something [...]

[...] you give to charity or church on a regular or substantial basis ($5,000 or more per year) the following is something [...]

]]> By: 150+ Ways to Save Money Over the Holidays | Million Dollar Journey http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-64512 150+ Ways to Save Money Over the Holidays | Million Dollar Journey Tue, 16 Dec 2008 11:30:51 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-64512 [...] The benefits?  All parties involved will feel good about giving plus you’ll receive a donation tax credit to [...]

[...] The benefits?  All parties involved will feel good about giving plus you’ll receive a donation tax credit to [...]

]]> By: FrugalTrader http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-45439 FrugalTrader Fri, 25 Jul 2008 01:57:37 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-45439 Hi Jonathan, yes you are correct, donating to charities is not a money making scheme. Think about it this way, the money donated to charities is with pre-tax dollars. Whatever money you donate, the government will return to you the tax you paid on that money. The way I look at a charitable donation is that the tax return is a side benefit for the good that you are doing. Hi Jonathan, yes you are correct, donating to charities is not a money making scheme. Think about it this way, the money donated to charities is with pre-tax dollars. Whatever money you donate, the government will return to you the tax you paid on that money.

The way I look at a charitable donation is that the tax return is a side benefit for the good that you are doing.

]]> By: Jonathan Vlietstra http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-45418 Jonathan Vlietstra Thu, 24 Jul 2008 22:58:28 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-45418 The problem is that a lot of people actually think you can save money by donating, but as far as I can see that is not true. Granted you get a large portion of the donation back off your taxes, but you cant lose sight of the fact that to get $460 back (as an example) you have to give $1000 away. You are still down $540 than you would be if you did no donation. The true benefit of donating that I can see, is that the chairity gets a lot more than what you lose - ie: it costs you $540 to give them $1000. Please correct me if I am wrong. The problem is that a lot of people actually think you can save money by donating, but as far as I can see that is not true. Granted you get a large portion of the donation back off your taxes, but you cant lose sight of the fact that to get $460 back (as an example) you have to give $1000 away. You are still down $540 than you would be if you did no donation. The true benefit of donating that I can see, is that the chairity gets a lot more than what you lose – ie: it costs you $540 to give them $1000. Please correct me if I am wrong.

]]> By: Meredith http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-44725 Meredith Sun, 20 Jul 2008 05:01:06 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-44725 Thank you so much for this information! Thank you so much for this information!

]]> By: Cannon_fodder http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33301 Cannon_fodder Wed, 30 Apr 2008 17:20:21 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33301 I think I understand Eric's confusion and he was not alone. It sounded as though, for example, I am in the lowest tax bracket and I donate more than $200 then I would actually receive more than $200 back from the government meaning a net gain for me. I think the closest you can get to an almost no cost charitable donation involves Super Flow Through Shares. I read an example that showed it would be possible for the charitable organization to receive $10,000 in SFTS for a net cost of $800 to a person in a 45% tax bracket . I think I understand Eric’s confusion and he was not alone. It sounded as though, for example, I am in the lowest tax bracket and I donate more than $200 then I would actually receive more than $200 back from the government meaning a net gain for me.

I think the closest you can get to an almost no cost charitable donation involves Super Flow Through Shares. I read an example that showed it would be possible for the charitable organization to receive $10,000 in SFTS for a net cost of $800 to a person in a 45% tax bracket .

]]> By: FrugalTrader http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33295 FrugalTrader Wed, 30 Apr 2008 16:41:44 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33295 Eric, the table in the article should give you an approximate answer. For charitable donations, it doesn't matter what tax bracket you are in. You get a tax credit based on the tax brackets of the province. The first $200 are given a tax credit equivalent to the donation x lowest marginal rate. After $200, it's the donation x highest marginal rate. Read over the article again and try a few calculations. Eric, the table in the article should give you an approximate answer. For charitable donations, it doesn’t matter what tax bracket you are in. You get a tax credit based on the tax brackets of the province. The first $200 are given a tax credit equivalent to the donation x lowest marginal rate. After $200, it’s the donation x highest marginal rate.

Read over the article again and try a few calculations.

]]> By: Eric http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33264 Eric Wed, 30 Apr 2008 13:52:52 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33264 Thanks FrugalTrader. Do you know of a table that, by province and tax bracket, provides a breakdown of the credits received for say a $100 donation? I.e.: A quebec resident in bracket X gives $1000, how much will he receive in tax credits? Regards, E. Thanks FrugalTrader.

Do you know of a table that, by province and tax bracket, provides a breakdown of the credits received for say a $100 donation?

I.e.: A quebec resident in bracket X gives $1000, how much will he receive in tax credits?

Regards,

E.

]]> By: FrugalTrader http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33170 FrugalTrader Tue, 29 Apr 2008 22:28:33 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33170 Hi Eric, sorry, i wasn't clear in my post. What I meant to say that that when you give to charity, the government wants you to give with <b>pre tax dollars</b>, thus the tax break. However, they give you the tax break on first $200 at the lowest marginal rate, but anything greater than that gets a bigger tax break at the <b>highest rate</b>. So what I was saying was that if you are lower than the highest tax bracket, you would get back more money than you've paid to the govt in the form of taxes. That is provided that you give more substantially more than $200 in the year. Feel free to contact me via the contact form above. Hi Eric, sorry, i wasn’t clear in my post. What I meant to say that that when you give to charity, the government wants you to give with pre tax dollars, thus the tax break. However, they give you the tax break on first $200 at the lowest marginal rate, but anything greater than that gets a bigger tax break at the highest rate. So what I was saying was that if you are lower than the highest tax bracket, you would get back more money than you’ve paid to the govt in the form of taxes. That is provided that you give more substantially more than $200 in the year.

Feel free to contact me via the contact form above.

]]> By: Eric http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33155 Eric Tue, 29 Apr 2008 19:18:13 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33155 Thanks for your prompt response. When you say 10% more than I paid in taxes, what is it you mean? Do you mean that you are 10% ahead by giving compared to not having given anything? The other clarification would be in regards to donating shares. You can contact me directly at windharness at hotmail .com We are a non-profit that just received our charity number and we are trying to mount an effective campaign. I would be great to hear from you. Thanks for your prompt response.

When you say 10% more than I paid in taxes, what is it you mean? Do you mean that you are 10% ahead by giving compared to not having given anything?

The other clarification would be in regards to donating shares. You can contact me directly at windharness at hotmail .com

We are a non-profit that just received our charity number and we are trying to mount an effective campaign. I would be great to hear from you.

]]> By: FrugalTrader http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33152 FrugalTrader Tue, 29 Apr 2008 19:00:47 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33152 Hey Eric, my wording may have been confusing. What is it that you're stuck on? Hey Eric, my wording may have been confusing. What is it that you’re stuck on?

]]> By: Eric http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-33150 Eric Tue, 29 Apr 2008 18:48:01 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-33150 Can you elaborate on this? What do you mean you actually gain from making a contribution? For those of you NOT in the highest tax bracket, you will actually GAIN by the tax credit given to you by the government. My current marginal tax rate is around 38%. If I donate to charity, I will get a tax credit of 48.64% (on everything over $200), which is almost 10% more than I paid in taxes. Can you elaborate on this? What do you mean you actually gain from making a contribution?

For those of you NOT in the highest tax bracket, you will actually GAIN by the tax credit given to you by the government. My current marginal tax rate is around 38%. If I donate to charity, I will get a tax credit of 48.64% (on everything over $200), which is almost 10% more than I paid in taxes.

]]> By: Getting Organized for Tax Season | Million Dollar Journey http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-32512 Getting Organized for Tax Season | Million Dollar Journey Thu, 24 Apr 2008 09:30:12 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-32512 [...] up your receipt amount before making a claim.  Remember that the first $200 donated receives a tax credit at the lowest marginal rate, everything after that is given a tax credit at the highest [...]

[...] up your receipt amount before making a claim.  Remember that the first $200 donated receives a tax credit at the lowest marginal rate, everything after that is given a tax credit at the highest [...]

]]> By: lyndonmaxewell http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm/comment-page-1#comment-745 lyndonmaxewell Wed, 07 Mar 2007 09:26:43 +0000 http://www.milliondollarjourney.com/how-the-charitable-donation-tax-credit-works.htm#comment-745 In Singapore, we do have a good number of charity drives running annually too. Seems like you have calculated on how to "kill 2 birds with one stone". :) That saying, by donating to the charities, and saving back on the tax credit resulting from it. In Singapore, we do have a good number of charity drives running annually too. Seems like you have calculated on how to “kill 2 birds with one stone”. :) That saying, by donating to the charities, and saving back on the tax credit resulting from it.

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