error on studio tax?

[metta2006]

Hi,
I'm using studio tax 2008 and I have this problem.
I'm filling out schedule 11. The line 11 of sc11 is "taxable income from line 260 of your return" but somehow it is about 18K more than what's entered in line 260. I cannot even edit it. Do you have an idea of what caused it? Is this an error on the program or what?
Thanks so much.

[Jacklad]

Hi,
I'm using studio tax 2008 and I have this problem.
I'm filling out schedule 11. The line 11 of sc11 is "taxable income from line 260 of your return" but somehow it is about 18K more than what's entered in line 260. I cannot even edit it. Do you have an idea of what caused it? Is this an error on the program or what?
Thanks so much.

Did you click the help link? It tells you "As per CRA requirements the amount of line 11 (and equivalent line of the provincial S11 form( may not equal the amount of line 260 if your income is higher than the first income threshold on Schedule 1 (Fed $37,885 and equivalent amount for the provincial case). In this case the difference is not due to software error but due to an alternative method of computing this amount as specified by CRA."

It's not just StudioTax - http://community.intuit.ca/discussion/index.php?showtopic=36866

More details of the calculation at http://www.visualtax.com/S11Adjustment.asp, which publishes the original message from the CRA:

"This year, we would like to bring to your attention the calculation of line 11 on the federal schedule 11 only for those taxpayers who have large amounts of Tuition, Education and Textbook amounts and have income that exceeds the first income threshold on schedule 1.

In accordance with legislation, the calculation at line 11 on the federal schedule 11 and the equivalent lines on the provincial forms are as follows:

Fed. or Prov. Tax on Taxable Income* divided by lowest Fed. or Prov. Tax Rate

*Tax on Taxable Income is:

Line 34 on Federal Schedule 1
Line 38 on the NU, BC, ON and NL 428
Line 42 on the YK428
Line 40 on the SK and MB 428
Line 37 on the NWT and NB 428
Line 30 on the AB428
Line 39 on the PEI and NS 428 "

So, no error on the part of Studio Tax.

[metta2006]

Thanks for the clarification, but if you do a paper return, what do you do? It simply says to write down the taxable income, line 260 of the T1.

[Jacklad]

Thanks for the clarification, but if you do a paper return, what do you do? It simply says to write down the taxable income, line 260 of the T1.

The CRA will adjust it, I'm sure.