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T5 income off the wall. Taxed 66%

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I am saving 2 steps untill the very end, which are my T5 income and my daycare expenses in Quebec.  For the sake of this example we will assume that me refund is $0.00 before the following steps.


FIRST STEP - When I enter my "T5" interest amount of $623.21 in box 13, the extra "Total Refund" Goes down to $239.12 less of refund.  This appears to be quite normal.


SECOND STEP - Now I proceed to delete the T5 amount of $623.21 returning my total refund to to the $0.00 benchmark prior to step 1.  Then I enter my daycare expenses of $8350 in daycare expenses for my Child in the first box and also the box "E" as well.  My refund goes up $5875.90 (expected).  Setting a new benchmarch at that amount.


THIRD STEP - Now I re-enter my "T5" interest amount of $623.21 in box 13.  I would expect that my refund is 239.12 less like in Step 1, but instead the "Total Refund" Goes down $406.12 less.  This does not appear right, since the only difference from my first step and latter steps was extra child care expense credits.


I am getting $167 less in refund when I introduce child care credits at any point in combination with my T5.


I tried the online version of another program and this does not happen.  Tried on paper and does not happen.  I made a request with U-File and they fail to see a problem.


I need help

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The federal income tax rate remains the same amount on the T5 interest whether or not I enter the daycare credits.  It looks to be the  Quebec tax owing increases by $170 on my T5 income if there is daycare credits used.  I can't seem to get my head around paying more income tax on my T5 interest if I have daycare expenses.

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OMG.  I found the reason in Quebec Schedule C.  The tax credit changes by 2% based on total Family Income.  I actually intrude into the next bracket by just a few dollars and it costs me an extra $170.  Thanks for you're help overtaxed58, you pointed me in the general direction.

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