The Income Tax Payoffs of Political Contributions

  • political donations are non-refundable tax credits
The rules governing Political Contributions are different at the federal and provincial levels.  As a result, the two levels of government offer separate tax credits to individuals who make eligible contributions to registered political parties, candidates and registered constituency associations.

Under federal income tax laws, eligible Political Contribution Tax Credits are categorised into 3 levels.  Credits are calculated as follows:

  • on the first $400.00, you can claim 75{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of the contribution;
  • on the next $350.00 (up to $750.00), you can claim 50{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of the amount; and
  • on any amount over $750.00 and up to $1,275.00, you can claim 33.33{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5}  of the donation.
political donations are non-refundable tax credits

Federal and provincial contributions result in significant tax credits that can be used to reduce your income tax liability.

While making federal contributions results in significant tax credits, it is important to note that these are non-refundable credits which max out at $650.00.

The provincial and territorial governments’ Political Contribution Tax Credits are structured similarly to their federal counterparts.  Depending where you live, limits vary greatly.

In the case of B.C., the provincial Political Contribution Tax Credit tops off at $500.00.  Just like its federal counterpart, the B.C. credit is also a non-refundable tax credit.  The provincial credit is calculated as follows:

  • on the first $100.00, you can claim 75{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of the contribution;
  • on the next $450.00 (up to $550.00, you can claim 50{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of the amount; and
  • on any amount over $550.00 and up to $1,155.00, you can claim 33.33{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5}  of the donation.

While contributions at the federal and provincial levels are eligible for the political donations tax credit, donations to local mayoral campaigns do not qualify.

If you would like more information about the Political Contribution Tax Credit, the various Charitable Tax Credits or other programs that can benefit you or your family, feel free to contact GB Pilley & Associates Ltd., Chartered Professional Accountants at 604 926 3522.

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2017-03-08T15:51:43+00:00