Marriage, common-law partnerships and the charitable donation tax credit 

In Canada, the end of the calendar year is often referred to as “charitable giving season,” as taxpayers tend to focus on their giving plans at that time and — provided eligible donations are made by Dec. 31 — look to claim related tax credits for the year. For 2024, however, the Department of Finance has proposed an extension to the eligible donation period to Feb. 28, 2025, citing concerns with the four-week Canada Post mail stoppage, which began in November 2024.  

While the proposal has not yet become law, the Canada Revenue Agency’s (CRA) confirmation that they will administer the measure as though it has passed has inspired many Canadians to take a closer look at their charitable giving strategies to maximize benefits. For some Canadians, this means incorporating a spouse or common-law partner into their plans. 

The tax rules permit donations by a spouse or common-law partner to be claimed on the tax return of either spouse, generally for a total claim of up to 75% of net income for the year. Amounts not claimed in the current year can be carried forward for use in any of the next five years. This provides flexibility for couples. Where one spouse makes an eligible donation to a registered Canadian charity, that donation can be claimed by the spouse who made the donation, or the spouse —  or common-law partner — of that person, in the current year or in any of the following five calendar years. It often makes sense to claim all donations on the tax return of one spouse to maximize tax savings for the family.  

This creates some interesting scenarios, one of which was recently addressed by the CRA in technical interpretation 2024-1022711E5.

Here’s an example: 

John and Rebecca have been married for 10 years. In 2019, John made a donation to an eligible charity. John claimed tax credits for portions of the donation on his tax returns for the 2019 through 2024 tax years, but an unclaimed portion remained after the 2024 year. No other individual, including Rebecca, claimed donation tax credits for any portion of John’s 2019 charitable gift.

Following the end of the 2024 tax year, because the five-year carry-forward period had expired, neither John nor Rebecca could claim the unclaimed portion of John’s 2019 donation for 2025 or beyond. However, Rebecca wondered if she could amend her tax returns for the 2019-to-2024 tax years to include John’s unclaimed 2019 amounts. 

Generally, within a 10-year time limit, the tax rules allow an individual to make a written request to allow the individual to claim a refund, or reduce taxes payable, for a past year if the individual was not aware of, or missed claiming, a deduction or credit for that year. This provision, combined with the ability to claim a spouse’s donation on a tax return, would normally allow Rebecca to claim John’s unused donations from the 2019-to-2024 period on her tax return for those years.  

Taking this a step further, how would the above scenario change if John and Rebecca were recently married? If we assume that John and Rebecca were married in 2022, would Rebecca still be able to claim John’s unclaimed donations for the period 2019 to 2024? 

In the above technical interpretation, the CRA confirms the ability to claim spousal donations even for the period prior to marriage or common-law partnership, provided the couple’s status is married or common-law for the year the claim is made. The claim must also be made for a year that is within five calendar years of the donation being made.  

In other words, in the revised scenario, even if John and Rebecca were not married or living common-law in 2019 when John made his donation, subject to net income limitations, either John or Rebecca can claim John’s unused donation amount from 2019 in tax years 2022 (the year of marriage), 2023 or 2024 because their status was married in those years. This could be helpful for newly married or common-law couples that are looking to maximize donation credit claims for the family. 

Flexibility when claiming donations 

The tax rules offer flexibility when it comes to claiming charitable donations. This flexibility is enhanced for couples who are married or living common-law. For the 2024 tax year, subject to the passing of enabling legislation, donations made in January and February of 2025 will be claimable on 2024 tax returns.  

In the case of spouses and common-law partners, combining the donations and claiming them on one spouse’s tax return can maximize tax savings. And, for unused donations, taking advantage of the five-year carry forward period, including where spouses are recently married or living common-law, can ensure that available tax credit claims are realized. 

Wilmot George

Tax & Estate

Wilmot George, CFP, TEP, CLU, CHS, is managing director, tax and estate planning at Canada Life, Wealth Distribution. Wilmot can be contacted at wilmot.george@canadalife.com.