Canadian Personal Finance Blog

Given tax day is TOMORROW!!! Let’s ask one more interesting question about what would be the impact of them giving $25 a week to their favorite charity?

Salary of $100,000 Gives $1250 Last Year

If they gave $25 a week for 50 weeks, the sum total would be $1250 of their money working in their community or somewhere else helping people and communities, good for him or her, but what would the impact be on their taxes? (it is the same for single income, single or married, sorry folks, no breaks for any of us, other than this (remember this is for someone in ONTARIO right now, not sure about anywhere else)).

If this person didn’t give (and made $100,000 a year) their taxes were: $29,952

If this person gave $1250, their taxes would then be : $29,414 {at least that is what my Quicktax program says}

So this person has donated $1250 (after tax money) but gets $538 in tax credits for their service. Not too shabby, so they are really only out of pocket: $712

Conclusion: Give what you can to whatever Charity you think deserves it, and enjoy the tax breaks as well (it’s not a sin to take your fair tax benefits of giving, that’s the way the system is set up, (see Mark 12:17 for details)(that’s your Sunday Bible study for the day)).