Jump to content
Français
ujay

T5 income off the wall. Taxed 66%

Recommended Posts

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

© 2013 ImpôtExpert, Thomson Reuters. Tous droits réservés. Politique de confidentialité
×
×
  • Create New...