Charitable Donations. Who Should Claim It?

[harbie]

Just wondering. If one spouse earns more than the other and uses the lower income earner as a dependant does it make a difference who claims any charitable donations? The lower income earner(the dependant)does file taxes and has minor personal business deductions.

I really hope that made sense

[Retiree]

I don't do my own taxes anymore, but I believe that charitable donations are a non-refundable tax credit, in which case I would have the higher income earner claim them.

[harbie]

Thanks Retiree. I don't do my own taxes either so I come to the experts lol

[Natalka]

Yep, it's better for the higher income earner to use it.

[Ciel]

Yes, the higher income spouse ought to make the claim-the logic is s/he will have a higher taxes payable amount and the NRTC help to reduce that amount. The only place that NRTC help, so every bit helps.

Now, if somehow the higher income earner has a lower tax payable amount than the lower income earner, the latter should be the donations claimer if those are personal donations. If the donations are made as part of a business that is a corporation, those donations can be claimed by the corporation (which is a legal entity). http://www.cra-arc.gc.ca/chrts-gvng/...g5-eng.html#q8