How can you tell if you should carry-over the donation receipts or use them for this year when filing taxes? I have $300 in tax receipts from 2006 to present but not sure if I should keep them until next year or just claim them?
You’ve posted this in Taxes > Canada. Here’s the Canadian answer.
On a tax return for a given year, you can used donation receipts issued for the current year, and any of the previous five years, as long as the receipt is not used twice. In this case, you can use anything going back to 2004.
In answer to your question, it really depends on whether you would need them. If your income is low this year, like under the basic exemption, using the donation receipts would be a wasted credit. Just work out the income tax with and without the receipts and see the result. At maximum, you should see a $59 reduction in the Net Federal tax, and a lesser amount on the provincial side.
Plus, you have the option of using just some of the receipts and carrying-over the rest.
You’ll have to decide what’s best for you.
February 20th, 2010 at 2:40 am
If I understand your question, you have receipts for charitable donations made in previous years. Charitable donations are only deductible if you itemize deductions by competing Schedule A. Charitable donations are only in good in the year they were made. The exception is this year Congress passed a special law to enable people who donated to Haiti relief charities until March 2010 to take the deduction on their 2009 tax return.
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February 20th, 2010 at 2:54 am
Donations have to be claimed in the year they where donated, if you can not use them they can be carried forward till you can, but you have to file them in the same tax year.
Any amount that you can reduce your taxes is worth it.
Now for your 2006 receipts you will need to send in a request for adjustment for your 2006 return.
Now if you have to pay someone to do it then it is not worth it, but if you can do it yourself then it might be you will have to decide.
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