Jake and Helen had incomes of $235,371 and $219,171 respectively in 2019. They also made several extraordinarily large charitable donations during the year. Jake donated $20,000 to the Canadian Diabetes Association and Helen donated $11,250 to the Canadian Cancer Society & $5,200 to the United Way of Calgary and area, as well as, $9,000 to the ABC Foundation. The highest federal tax bracket for 2019 applied to income over $210,371. How should the couple deal with these donations in order to maximize their total federal tax credit per dollar of donation? (Including possibly carrying-forward a certain portion of a claim to a future year). Outline which donations each of the couple should claim in the current year and calculate both the individual taxpayer and the total household charitable tax credit that those donations will generate?

Answer rating: 100% (QA)

Answer For Jake he should claim his donation of 20000 to the Canadian Diabetes As... View the full answer