Hello
For my daughter's return, her tuition expenses are much more than what she needs to reduce her federal taxes payable to zero. The program is calculating the exact amount of tuition credit required in schedule 11 so the non-refundable tax credits equal the federal tax payable. The remaining tuition fees are carried forward to next year. This is fine on its own, however, she also received some dividends income and with that she received a dividend tax credit which shows on line 40425. But when you add the non-refundable tax credits and the dividend tax credit, they are greater than the fed tax payable which means the program is wasting some of the tuition tax credits.
I have tried changing the settings to carry forward, transfer to parent, let maxback decide -- none of them solve the issue. Is there a way to correct this?
By example:
Fed Tax Payable
2,500
Non-Ref tax credits
Basic
13,000
15%
Non-Ref Tax Credit
1,950
Net tax owing without tuition credit
550
Divide above by 15%
3,667
this is the amount the program calculates to use as the tuition tax credit on SCHEDULE 11
On tax return:
Line 118 Fed Tax owing
2,500
Line 119 - non-ref tax credits
2,500
Line 120 - dividend tax credit
200
Line 122 - total
2,700
Line 123 --- line 118 less 122 (if negative enter "0")
0
this is the problem - the $200 dividend tax credit is not being used
the program should reduce the tuition amount used
Tuition paid
8,000
Used in 2021
(3,667)
Carry forward
4,333
