Tax credit information

This page explains how giving to Mill Woods United Church, which is a registered charity, can give you a tax credit.

The charitable tax credit in Alberta is 25% on the first $200 of givings and 50% on remaining amount of donation. For example, a donation of $1000 to MWUC creates a tax credit of $450: 25% of $200 = $50 + 50% of $800 = $400)

Tax credits are applied dollar for dollar against tax owing, so for many families, the example above would reduce their tax bill by $450. This means a donation of $1000 to MWUC would cost the donor only $550 after tax.

Limitations

1) Up to 75% of a taxpayer’s net income can be claimed as donations, except in the year of death or the year preceding death, when 100% of net income can be claimed as donations. 

2) The tax owing in the year of donation cannot be reduced below $0

3) You can carry donations forward for 5 years

Charities play an important role in our society and provide valuable services — including to the most vulnerable. That is why the governments of Alberta and Canada supports charities through tax privileges, such as their ability to issue official donation receipts, and the ability of taxpayers to claim a charitable donations tax credit.