Canada Extends the 2024 Charitable Donation Deadline to February 28, 2025

Summary

The Department of Finance Canada has released draft legislation to amend the Income Tax Act, extending the deadline for donations eligible for tax support in the 2024 tax year to February 28, 2025. The extension gives taxpayers an additional two months to make qualifying donations that can be claimed on their 2024 returns for the charitable donation tax credit. For cross-border and dual filers, the change offers more flexibility in determining which tax year a donation belongs to, while placing greater emphasis on receipt retention, currency conversion, and the ordering of credits between Canada and the United States. The extension only affects the timing of when eligible donations count toward the 2024 tax year; it does not change the deductibility of the donations themselves or the filing rules of either country.

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Our Take

For taxpayers with filing obligations in both Canada and the United States, the timing and currency treatment of donations is one of the most frequently overlooked aspects of cross-border filing. The window extending to February 28, 2025 gives taxpayers who earned more in 2024 additional room to plan around the credit. Note, however, that donations to US-registered charities are generally not creditable in Canada unless the organization is registered with the Canada Revenue Agency (CRA), and the reverse is also true. Cross-border donors should keep official receipts that satisfy both countries' requirements and handle the CAD/USD conversion carefully. Consider consulting a licensed CPA before filing your 2024 return to confirm whether, and in which year, a donation will be recognized.

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.