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T1
446 Education
  Schedule 11 vs. taxable income from line 260 |
| Program(s) affected: |
T1 |
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Document created: |
02 18, 2009 |
| Tax year(s): |
2008 |
Document last modified: |
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| Version(s): |
12.10, 12.11 |
Problem status: |
NA |
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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
Ex.: Taxable income (line 260) = $ 45,000
7,248.30 / 15% = $ 48,322
Adjusted amount reported on line 11 of Schedule 11 = 48,322
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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