Giving to charity is a selfless act that’s worthy of recognition. That recognition can come in many forms, and donors should know that even the “tax man” likes to reward men and women who donate to charity.
Both the United States and Canada reward donors with tax credits. The financial services firm H&R Block notes that, in the United States, taxpayers can deduct donations made to qualified charities. Such deductions must be itemized, but they can greatly reduce a person’s taxable income. According to TurboTax®, Canada also has a generous tax credit system.
H&R Block notes that, in the United States, donations must go to one of three types of groups in order to qualify for deductions. Donations made to nonprofit religious groups, nonprofit educational groups and nonprofit charitable groups, which are often referred to as 501©(3) organizations, may qualify for deductions.
The Government of Canada notes that the Charities Directorate can be contacted directly at 1-800-267-2384. to confirm if a charity qualifies for a tax deduction. In addition, TurboTax® notes that the Canada Revenue Agency (https://www.cana
Non-cash donations are eligible for deductions in both Canada and the United States.
Donating to charity is a selfless endeavor that may lead to rewards when donors file their tax returns.