What is the new First-Time Donor's Super Credit?

This new credit effectively adds 25% to the rates used in the calculation of the charitable donation tax credit for up to $1,000 of monetary donations. As a result, a first-time donor will be allowed a 40% federal credit for donations of $200 or less, and a 54% federal credit for the portion of donations over $200 but not exceeding $1,000.

Example:

An eligible first-time donor claims %500 of charitable donations in 2013. All of the donations are donations of money. The first-time donor's super credit and charitable donations tax credit would be calculated as follows:

First $200 of charitable donations claimed: $200 X 15% = $30

Charitable donations claimed in excess of $200: $300 X 29% = $87

First-Time Donor's Super Credit: $500 X 25% = $125

Total First-Time and Charitable Tax Credit: $242

Following is information on the Canada Pension Plan changes. There has been a lot of confusion over the new changes and I wanted to help in clearing up some of the confusion.

I hope the following helps in gaining a better understanding of these new changes.

Canada Pension

All workers aged 60 to 65 have to make CPP contributions - even if they are receiving a CPP or Quebec pension plan retirement pension. Workers who are 65 to 70 years of age and who are receiving a CPP or Qpp retirement pension have to contribute unless they have taken action to stop their CPP contributions. By continuing to contribute (which can be done up to and including the month they reach 70 years of age), they will receive more benefits by way of the new post-retirement benefit. For more information on the new post-retirement benefit go to www.servicecanada.gc.ca/cpp.

To stop contributing to the CPP, workers have to be at least 65 years of age and receiving a CPP or QPP retirement pension. They must do the following:

Employees (who may also have self-employment income) have to complete form CPT30, Election to stop contributing to the Canada Pension Plan, or Revocation of a Prior Election, send the original form to the Canada Revenue Agency and give a copy to their employer. The change will take effect on the first day of the month after the employee gives the form to their employer. Self-Employed workers must complete Schedule 8, CPP Contributions on Self-Employment and Other Earnings, when they file their income tax and benefit return. The change will be effective on the first day of the month referenced in Schedule 8.

Note: If you choose not to contribute by giving a completed copy of Form CPT30 to your employer, you have to wait until the next calendar year before you can start contributing again.