nomind Posted April 11 Report Share Posted April 11 For couples who are Alberta tax residents ONLY, UFile 2023 does not properly optimize charitable donations due to recent changes in Alberta's donation tax-credit rate, specifically targeting the first $200 of your donation. Background covered in How Gifts of Any Size Can Help Your Tax Return - United Way of Calgary and Area (calgaryunitedway.org) Quote Alberta has substantially increased the donation tax-credit rate, specifically targeting the first $200 of your donation, raising the rate to an impressive 60 per cent. This bold move aims to encourage more Albertans to contribute to registered charities. Combine this new provincial donation credit rate with the existing 15 per cent federal tax credit, and you will receive a remarkable 75 per cent tax credit on the first $200 of eligible donations. This marks a substantial increase from the combined 25 per cent tax credit available last year, showcasing the province’s commitment to supporting charitable initiatives. As with previous tax years UFile 2023 optimized the charitable donations to the higher earning spouse. However, changing the Optimization of donations to have the lower earning spouse to claim their first $200 of donations and then allocating the remainder to the higher earning spouse results in a better optimization of the charitable donations. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 11 Report Share Posted April 11 Hello nomind, Thanks for the information. Correct, UFIle optimizes the CRA donations. Quote Link to comment Share on other sites More sharing options...
nomind Posted April 11 Author Report Share Posted April 11 5 hours ago, Geo123 said: Correct, UFIle optimizes the CRA donations. I think you've missed my key point. For Alberta tax residents UFile 2023 does not properly optimize charitable donations. Due to the change in Alberta's donation tax-credit rate, the lower earning spouse should claim $200 of charitable donations and the higher earning spouse should claim the rest. UFile for Windows optimizes all charitable donations to the higher income spouse, which is not optimized. Quote Link to comment Share on other sites More sharing options...
Cam H Posted April 11 Report Share Posted April 11 nomind - you are 100% correct. Geo123 - just did mine, initially let MaxBack Calculate the split, it gave all our donations to me. Manually went into split $200 to spouse, balance to me, missed turning MaxBack off the first time. After both splitting and turning MaxBack off - I picked up an extra $50 back on our refund. Tax Credit Calculation is correct (or looks like it), UFile for Windows is not adjusting for the $150 back on the first $200 when making the decision on how to split family donations. If you have over $200 in donations and live in Alberta, I'd recommend manually splitting and turning MaxBack off (or at least until UFile corrects the situation). C Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 12 Report Share Posted April 12 Hello Cam H, Thanks for the update. Quote Link to comment Share on other sites More sharing options...
nomind Posted April 12 Author Report Share Posted April 12 What are the chances that this bug gets fixed in an update to UFile for Windows 2023? Quote Link to comment Share on other sites More sharing options...
Geo123 Posted April 12 Report Share Posted April 12 Hello nomind, I will report the issue to the QA / DEV team for review. Quote Link to comment Share on other sites More sharing options...
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