I went through my first income tax audit last year.
The letter arrived months after we received our return. I assumed the review was triggered because I claimed some of my husband’s education credits for the first time.
I was half correct.
They wanted the paperwork for the credits, but they also wanted something else: our charitable giving receipts.
Canada offers a very generous tax credit to those who give money to charity. For us, this has huge implications for our taxes, often playing a key role in the end result: a return.
But while the tax benefits are a nice bonus, that’s not why we give.