TaxCycle Home | Products | Pricing | Events | Documentation | Support | Blog

Order of claiming non-refundable tax credit


#1

Hi there,

I have a client who is a student. Last year went out of country to work for a co-op term, and also paid tax there. As the client is Canadian resident, I reported the income on line 104 as foreign employment income, and claim a foreign tax credit. But the program claim the tuition first before claiming the foreign tax credit. Is this the correct order of claiming? or can I claim the foreign tax credit instead and carry forward the tuition? Seem like the tuition is waist when claiming it before foreign tax credit.

Thanks in advance,
Francis


#2

The tuition claim is prescribed by the ITA S. 118.61 which claims tuition based on an individuals tax otherwise payable - at that point, the rest of the ordering of credits in TaxCycle adheres to section 118.92 of the Act that specifies ordering provisions.

~ Rob