Add a Donation Credits workpaper

Overview

The Donation Credits workpaper is for individual taxpayers filing an IR3 return. It helps calculate the donation tax credit and ensures the donation tax credit (also known as the 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 Credits workpaper

There are two ways to add a Donation Credits workpaper to an entity.

From the Workpapers menu

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 the 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.

This section can be used to transfer the refund to the same taxpayers income tax account; the taxpayer's details will just need to be entered in.

This section of the software is not integrated, so if you would like to see the corresponding credit you will need to manually enter in the other side of the transfer.

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

Can I record shared donation credits?

Shared donation credits are not supported in TaxLab. Any shared donation receipts need to be added separately in each 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

Requesting income tax refund transfers