These answers are based on the information available from the Canada Revenue Agency web link http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/clmng1b2-eng.html
1.I am a new immigrant to this country and I don't know how the Tax system work here. I noticed they take lot of money from my pay cheque every month as Tax and is there any way I can get it back?
Tax system in both India and Canada are almost the same. Only difference you will notice here is that both provincial and federal taxes are shown separately in Canada wherein tax is collected by the central government in India and distributed to states. Employers are bound to deduct taxes from your pay and remit the collected amount to the government ( Canada Revenue Agency ) from each pay cheque. Employers do not know your total income, earned else where and so they deduct tax on assumption of your total income for the year and expected tax to be paid. It is called tax deducted at source. (TDS). When you file your tax returns your return statement will show your exact income for the year and tax calculated accordingly. If your TDS is more, then you will get a refund. If you need to pay more you have to make the payment before March 31 of the next tax year.
2. What does it mean by the Charitable donation.
Donations to registered charitable societies are called charitable donation. In order to get charitable status for any institution they have to register themselves with Canada Revenue Agency who will provide them with specific authorization and a number. You need to be very careful before making your donation and confirm that the concerned institution is registered under charitable institution by CRA and your donation is eligible for tax credit. Though the tax credit rate for federal remain the same, provinces have their own tax credit rate ( refund). Fortunately Alberta still provides the highest tax credit rate in Canada.
3. I love my church and community and I really want to support every month my church specially to buy the church. But I don't have much income. How do I find out from my Pay cheque how much Tax I give a month?
Your pay slip will clearly show Federal tax and provincial tax deducted from your salary. Remember it is only tax deducted at source and may not be the exact amount you need to pay. Look at your cash flow and decide what you want to donate.
4. When I got my T4 slip, I couldn't find which box is my Tax contribution to Revenue Canada. Only person who did the Tax he looked for it.
If you are not self employed you can file your tax returns by yourself. You can get help from soft wares supplied companies like tax chopper etc. which are available online. I would encourage you to try it for yourself. You will be copying your T4 data to the online form and the results will be displayed right away for you. Go through your T4 again and you will find TDS after your total income column.
5. I want to contribute to the church, how much I can contribute and what is the way I have to approach and make a decision that way I will get it back money as my charitable tax credit.
Please visit CRA website where you can find charitable donations tax credit calculator and enter various amounts you plan to donate. Calculator will ask for your total taxable income but the number doesn't make big difference. You can then decide how much you want to donate. It is always better to join PAD ( Pre authorized debit ) from your account monthly which will reduce your cash flow issues and decide for a lump sum in December where you can get an approximate tax return estimates.
6. I am a New immigrant and First time I am giving to Charitable donation, is there any extra benefit I may get it?
It is the same for every one. The first $200 of all your charitable giving entitles you to a tax credit of 25% (10% provincial tax credit and 15% federal tax credit). You are entitled to a tax credit of 50% for all charitable gifts exceeding the initial $200 (21% provincial tax credit and 29% federal tax credit).
7. Be frank with you, I am a new immigrant and didn't get a good job so far. Only one partner is working, still making $50000 per year. I have quite challenges saving money but I love to donate to the church. I want to give my maximum and how much I can contribute to support to the church monthly on PAD ?
It all depends on your willingness and faith. Instead of looking at how much you can donate, you think of what you can sacrifice to save and redirect that savings to the church. It is not equal amount that matters but equal sacrifice that matters.
8. I have three children and I am getting Child benefit around $1000 per month. I am happy to donate some money to church. Does that affect my child benefit? or any other benefit I may get when I do the Tax next year.
No tax credit has nothing to do with any other benefits you receive.
9. Hello, I am a guy making family income around $100000- 130000 per year. I really want to support our church as I love it. I believe that it will be a good asset for our community down on the road. How much I possibly able to contribute a year towards this project. I hope that charitable giving will support my financial planning in future.
What is your say on it.
Please refer excerpts from CRA web site.
Line 349 - Donations and gifts
If you or your spouse or common-law partner made a gift of money or other property to certain institutions, you may be able to claim a federal and provincial or territorial non-refundable tax credit when you file your return. Generally, you can claim all or part of this amount, up to the limit of 75% of your net income.
If you require information about a gift made prior to 2018, you will need the version of Pamphlet P113, Gifts and Income Tax, for the year in which you made your gift.
10. I have a friend who is kind and gracious. When I shared with her about Mother Teresa, she was super excited and told me She Loves Mother Teresa and she voluntarily told me that she won't mind to contribute as long as she gets a tax receipt at the end of the year. Is it possible to give tax receipt to her if she is ready to contribute, even though she is NOT member of this church.
You don't need to be a member of the church to donate. Tax receipt will be issued in the name of the donor who can claim tax credit. Honestly that is another good way of collecting donations. We know several kind, high net worth individuals who will be looking for charitable donation tax credit receipts when they make a big income for the tax year. Your donation of your time and effort will be much appreciated.
11. I have some business share in my name, I found it is not good any more keeping in my portfolio, Can I contribute to the church for this cause and will I be eligible to get a tax receipt ?
Please refer following excerpts
Whether you are filing personal Canadian income tax or corporate income tax, the rule for charitable donation deductions is basically the same if you're running a Canadian business.As a sole proprietorship or partnership filing a T1 income tax return, you can claim on line 340 charitable deductions and gifts of up to 75 percent of your net income (line 236). The exception to this rule relates to the taxpayer’s death: "For the year a person dies and the year before that, this limit is 100 percent of the person's net income."
The maximum amount of charitable donations that a Canadian-controlled corporation filing a T2 income tax return can claim is the same—75 percent of its net income (line 300).
You cannot claim charitable donations to create or increase a loss but unused charitable donations can be carried forward and used in any of the five following tax years.
12. I have some bond in my name, can I contribute for the church?
Yes. Refer below...Get help from your financial advisor before making your decision
What are the benefits of gifting publicly traded securities directly to a charity?
If you own publicly traded securities, outside of a registered account (RRSP, RRIF, TFSA), that have increased in value since you purchased them, and you donate them in-kind to charity, you'll realize even more tax savings than you would with a cash gift.
If you sell the securities, 50% of the capital gain will be taxable income. However, if you donate the securities in-kind, the taxable capital gain is avoided, and you will receive a charitable receipt for the market value of the securities on the day you initiate the transfer to Abundance Canada.
Example of Tax Advantages of Donating Securities to Charity:
Sell Securities & Donate CashDonate Securities Gifts in Kind
Adjusted Cost Base($10,000)($10,000)
Taxable Capital Gain$20,000 (50%)$0 (0%)
Marginal Tax Rate40%40%
NB: In this example, when the securities are donated directly to the charity as a gift in-kind, the donor does not realize a taxable capital gain, saving the donor $8,000 in tax payable. The $50,000 donation receipt can then be used to off-set other income tax payable.
Which securities should I donate for maximum tax savings?
Donate securities that are held in a non-registered investment account. Investments held in a registered account, such as an RRSP or RRIF, do not qualify for these tax savings.
Donate the securities that have the largest capital gain to maximize the tax savings for zero capital gains inclusion for the donated securities.
13. Is there any way I may be able to support the church this time?
Yes. Donate what ever you can. Ask for donations from your friends and relatives without affecting your relationship. Donate your time, energy and most importantly your prayers.
14. I really want to support with a lump sum payment to our church. My house is paid off. If I take a second mortgage and give to church $50000. Can I use this charitable donation of one time payment claiming for 5 years as I don't have that much annual income?
You don't have to claim all the donations you made this year on your current year's return. You can carry them forward and claim them on your return for any of the next 5 years. ... Learn more about charitable donations. The maximum donation amount you can claim is 75% of your net income.
15. My bank is sending email occasionally that I am approved with a cheap interest on Credit line and asking me to use it for six months with out interest. Is there any way I can make use of it for the church and down on the road I am be able get Charitable Tax deduction, Can you guide me in this regard?
Your enthusiasm is much appreciated. But remember, you need to pay back the 0 interest loan they are offering you now. Do you have resource or future income to pay it off before the end date? If not ,always look at your cash flow budget before making any decisions. Don't ever be lured into interest free credits.
16. I really want to support our church. I thought of taking a small loan from the bank, possible with a monthly payment or biweekly payment? what is your suggestion on it.
Yes, as long as you can repay the loan with your income.
17. Church is asking for PAD payment rather than Lump sum payment right now as they need mortgage approval and things, What is your take on this ?
PAD is much appreciated for various reasons. It is very difficult to donate a lump sum all of a sudden. Mostly we take the lump sum from our credit limits. PAD is a good form of budgeting your cash flow. If you are making small donations regularly you may not feel the burden in your cash flow. Banks look for regular commitment from the applicant for repaying the mortgage. Banks can be assured by letting them know the number of contributors through PAD and the amount contributed month to month.
18. Some people confuse me telling about secured and unsecured personal loan, what would be best if I take a loan from the bank to support the church?
Secured loans carry lower interest. It is always better to use your secured limits before touching your unsecured limits. Check the interest rates before making any decision.
19. Whom I have to contact in the bank in this regard to get a loan for my church support fund.
All your loan applications will be based on your personal request. We know that mostly we say the purpose of the loan is for future emergencies, investments,pay other debts,buying an asset etc.
20 I have some Indian money in hand and can I contribute to the church project and still eligible for Tax receipts
You need to convert the money to Canadian and donate the CDN money to avoid confusions. Tax receipts will be based on CAD only.
21. I have some money in India and can I use it for church project anyway?
Bring it to Canada and then donate. Church may not be able to issue tax receipts for your donations to other institutions.
22. I am a contract worker and I am not paying that much tax. Only end of the year, they calculate and ask me to make payment. so I don't know who much I will be eligible to donate for this project.
From your pay slip in the first week of December you can estimate your taxes and decide your donation amount.
23. I am self employed and have a small business. Can that small business contribute to the church and eligible for Charitable Tax deduction? that way, would it help me any way ?
Yes. Kindly read answer for question # 11.
24.My husband has a business and I am employed at a private business institution. Only I pay regular tax monthly and we do family tax end of the year. what is the best way to donate to the church, I mean separately as two individuals or jointly?
Whoever is paying more taxes is advised to report the tax credit in his/her returns.
25. I have a trucking business, I give lot of money as a Tax and is there any way that would be used for our church which will help the church and me,my business carrier? what is your take on it.
Yes. Your business can donate. Kindly go through answer for question # 11.
Please refer for accuracy by going through Canada Revenue Agency web link http://www.cra-arc.gc.ca/chrts-gvng/dnrs/svngs/clmng1b2-eng.html