How to declare political contributions

Why read this?

You donated to a political campaign, attended a political fundraiser, or volunteered for a campaign.

What to do

1. Claim federal political contributions

Any donations from you and your spouse or common-law partner that were donated to a candidate or registered federal political party are eligible for a non-refundable credit. Note that volunteering time isn’t eligible for the credit.

Also, if you went to a political fundraiser, Elections Canada says the ticket price, minus the fair market value of the event, is a donation.

• Decide whether to pool your credits with your spouse’s or to claim them separately.
• Contributions must be claimed the year they’re made, says Jason Valente, tax manager at Logan Katz in Ottawa. They can’t be carried forward or back.
• List total contributions on Line 409 of Schedule 1, Federal Tax.

a. If the total contribution is less than $1,275, calculate the credit on the Federal Worksheet.

• Enter the total on Line 410 of Schedule 1.

b. If the total contribution is $1,275 or more, enter $650 on Line 410.

WARNING: Don’t claim political donations on Line 349 (Donations and Gifts) of the return. Political contributions have different tax rules compared to other donations.

2. Claim provincial political contributions

Provinces offer credits for provincial election donations. In Quebec, for instance, provincial donors can receive a credit of up to $310, and donors to municipal elections can receive up to $155.

In Ontario, you can receive a credit of up to $1,330. You must:

• be a provincial resident on Dec. 31 of the tax year, and
• have made a contribution to a registered Ontario party, constituency association or candidate.

To calculate the Ontario credit, use Line 6 of CRA’s Provincial Worksheet for Ontario and complete Line 5 of form ON479.

For details of your province’s political donation credit, see CRA’s guide.

3. File your return.

• If filing electronically, don’t submit donation receipts. But keep them for six years, in case CRA requests them, says Valente.
• If filing by paper, attach receipts.

TIP: Campaigns must issue receipts for all donations more than $20.

Sources: Jason Valente, CA, CPA, tax manager at Logan Katz in Ottawa; CRA; Elections Canada.