T1
446 Education
Why is the taxable income amount entered on line 260 of Schedule 11 different from the one on line 260 of the federal return?When a taxpayer earns an income which ranks above the first tax bracket (in other words, when the taxable income exceeds $ 37,885), the income entered on line 11 must be ajusted in order to account for the tuition fees actually required to bring the taxable amount down to 0. This is how the adjustment is calculated:Tax payable from line 37 of Schedule 1 / Rate applicable to non-refundable credits
This applies to the federal as well as the other provinces (except Quebec). There is no mention to that effect in the tax guides.
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