bringing down tax owed through political contributions tax credit
TRANSCRIPT
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Bringing Down Tax Owed Through Political Contributions Tax Credit
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Political Contributions Tax Credit is one common credit that is given to taxpayers who are interested in sponsoring their favorite political party with a share of their hard earned money.
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They receive tax credits in the following tax year as a rebate.
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It is an opportunity for you to contribute to a registered federal political party with which you will get a tax credit which is deducted from your federal tax payable.
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Political Contributions Tax Credit is a way by which contribution towards a common cause is encouraged and at the same time funds the political organization’s growth and development.
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If you are married, you can make two separate contributions and get receipts in the names of both spouses, for greater flexibility in maximizing the tax credit.
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If you spread your political contributions over two years you will enjoy more credits. For federal purposes, the credit can only reduce taxes paid or payable.
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If you plan to use your credits make sure that you will certainly have some taxable amount for the next tax year.
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If you are not liable for any taxes during the forthcoming tax year, the credit is lost. Also the credit cannot be carried forward.
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Though this is not a prominent contribution system, it is definitely one of the useful tax incentive programs.
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This will allow certain taxpayers to subtract the amount of the credit from the total they owe.