Deadline Extended to February 28, 2025 for 2024 Charitable Donations: What Taxpayers Should Know

Summary

In January 2025, the Department of Finance Canada released draft legislation and explanatory notes proposing to amend the Income Tax Act to extend the deadline for donations eligible for tax support in the 2024 tax year to February 28, 2025. The government said registered charities play an important part in Canadian society and that it encourages giving through the Charitable Donation Tax Credit for individuals and the charitable deduction for corporations, with federal tax assistance for donations projected at nearly $5 billion for 2024. For donors, the practical effect is that gifts made in the first two months of 2025 could still be claimed on a 2024 return.

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Our Take

Timing and recipient matter as much as the amount of the gift: Canadian tax support for donations generally requires giving to a registered charity or other qualified donee and keeping an official receipt. If enacted, the extended deadline would allow donations made between January 1 and February 28, 2025 to be claimed for the 2024 tax year — relevant for individuals fine-tuning a prior-year credit and for corporations claiming a deduction. Donors who already filed may need to revisit their return once the measure takes effect, so it is worth asking a professional whether an adjustment applies. Cross-border filers should also note that the two systems differ: the US charitable deduction is subject to itemization and adjusted-gross-income percentage limits, and it does not mirror Canada's credit, so the same gift is generally claimed on only one side. Keeping complete receipts and payment records helps coordinate both filings. Because legislation and individual circumstances evolve, consult a licensed CPA for your situation.

Disclaimer: This article is general information only and does not constitute tax advice; it should not substitute professional tax counsel. Please consult a licensed CPA for advice specific to your situation.