Donation Credits workpaper

Overview

This workpaper is designed for individual taxpayers filing an IR3 return. It helps calculate the donation tax credit and ensures the credit (donation rebate) is correctly limited based on the taxable income.

If you are filing an IR4, IR8 or IR9, please refer to our support article on the Charitable gift workpaper.

Add a Donation workpaper

There are two ways to add Donation workpapers to the entity.

From the Donation Credits summary

1. Select Workpapers in the menu bar > Select Donation Credits.
2. Select ‘New’ in the appropriate category (School, Religious or Other).
3. Enter the amount of the donation.
4. Optional: Edit the name of the donation.

From the Workpapers screen

1. Select Workpapers in the menu bar > Select Workpapers.
2. Select New Workpaper > Select Donation.
3. Select the Donation type > School, Religious or Other. 
4. Enter the amount of the donation. 
5. Optional:
   • Modify the Paid date.
   • Enter the Donee organisation name.
   • Add a note.

Transfer donation credits

If there is a donation tax credit you can transfer this to another taxpayer or tax year. 

1. In your IR3 entity > Select Workpapers in your menu bar > Under Credits > Select Donation Credits.
2. Under Transfer refund to someone else’s income tax account > Enter the name; IRD number; Tax year ending; and amount to transfer.

Please note in this section you can only transfer the amount of the donation tax credit. This section can also be used to transfer the refund to the same taxpayers income tax account, the taxpayers details will just need to be entered into this section. 

IR526

This can be viewed under Reports > Tax Return Forms > Tax Credit Claim (IR526). 

In order to view this information and file an IR526 ensure that ‘On’ has been selected.

Troubleshooting

Shared donation credits

Shared donation credits are not fully supported in TaxLab. This information can not be linked to the other taxpayer’s details in TaxLab. Any shared donation receipts need to be added in the other taxpayer’s income tax calculation.

Can I transfer donation credits to the taxpayers income tax account?

Yes, donation credits can be transferred to the same taxpayers income tax account. To do this, in the Transfer refund to someone else’s income tax account > Enter the name; IRD number; Tax year ending; and amount to transfer for the entity you’re working on.

Related articles

Charitable gift workpaper