Question

Janine made the following contributions and donations during the current taxation year:

• Green Party of Canada: $250
• Canadian Cancer Society: $300
• British Columbia New Democratic Party: $100
• United Way: $200
• Liberal Party of Canada: $350

What is the federal political contributions tax credit for Janine in the current year?

Answer 1

Federal political contributions are donations that were made to a registered federal political party.

Tax credit can be received up to 75 percent of the first $400 of donation, followed by 50 percent of any amount between $400 and $750 and 33.3 percent of amounts over $750. The maximum amount of the credit is capped at $650.

Donation given to	Federal Political Party?	Gross Amount Eligible
Green Party of Canada	Yes	$        250
Canadian Cancer Society	No	NA	NGO
British Columbia New Democratic Party	No	NA	Provincial
United Way	No	NA	NGO
Liberal Party of Canada	Yes	$        350
Total		$        600

Total of $600 donation is eligble for federal political contributions tax credit.

For the first $400, 75% = $300

For the next $200, 50% = $100

Total  federal political contributions tax credit for Janine in the current year is $ 300 +$ 100 = $400.