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A taxpayer makes charitable donations of $1,300 in 2019. The spouse donates $600. Each of the...

A taxpayer makes charitable donations of $1,300 in 2019. The spouse donates $600. Each of the individuals earn $70,000. What would be the maximum amount of charitable tax credit (round to nearest dollar) the taxpayer can claim for 2019? (In Canada)

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Ans: In Canada there is a provision that a taxpayer can claims 53% amount of charitable tax credit or charitable donations in a year.  Charitable donations in Canada are eligible for both federal and provincial donation tax credits, with combined incentives of up to 53 percent as up to $200 its 15% and more than $200 if donation then it will be 29% for credit as federal Plus 24% for provincial

Here , a taxpayer contributes $1,300 of Donations in 2019

Charitable tax credit= 15%of $200+ 29% of $1,100

= $30+ 319

=$349

Plus 24% for provincial= $1,300 * 24%

= $312

Total charitable tax credit= $349+$312

= $661

Also since each of the individuals earn $70,000 then there is no need to combine the donations of both the persons

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