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Refundable medical expense supplement calculation

Hi,

when calculating the supplement for new immigrant, the income used to calculate the supplement is the income from page 1 of T1 (full year worldwide net income), instead of just income from line 23600. Taxcycle used the income from line 23600, where it indicate ‘Net income of the spouse or commom-law partner from page 1 of the return’. Is there a way to fix this instead of overide?

“when calculating the supplement for new immigrant, the income used to calculate the supplement is the income from page 1 of T1 (full year worldwide net income), instead of just income from line 23600. Taxcycle used the income from line 23600, where it indicate ‘Net income of the spouse or commom-law partner from page 1 of the return’. Is there a way to fix this instead of overide
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I may be missing something, but your client does not appear to meet the definition of “eligible individual”, particularly with respect to requirement (a) in that definition pursuant to S122.51(1).
("(a) who is resident in Canada throughout the year (or, if the individual dies in the year, throughout the portion of the year before the individual’s death);")

Hence to calculate a claim for a refundable medical expense tax credit by means of override would appear to be claiming a credit to which he is not entitled.

If this is the case, he may run into the problem of Section 239(1.1)“Every person who obtains or claims a refund or credit under this Act to which the person or any other person is not entitled… is guilty of an offence and, …
(h) both the fine described in paragraph 239(1.1)(g) and imprisonment for a term not exceeding 2 years.”

Now I may be wrong, but I cannot see anything that overrides S122.51(1).

Yes, sorry. I should mention,

One spouse is a resident throughout 2019, and another just came to Canada in 2019. And claiming the refundable medical expense supplement on the spouse who is full year resident.

I am not seeing where it is that you think that Taxcycle is wrong.

What section of the ITA is it that you think that Taxcycle may be violating?

Joe, do both spouses have to be resident for the full year in order to qualify? Is that why TaxCycle does what it does? I leave non-resident or part year resident situations for the CPAs.

The spouse is the only one that was resident for the year, so the program is using the correct number

I filed the return, using both the number from line 23600 from both spouses.(no overide) And CRA assess the return using the income from line 23600 for the full year resident spouse, and the worldwide income for the part year resident spouse.

Eg.

Spouse A - full year resident with $A net income on line 23600
Spouse B - part year resident with $B1 net income on line 23600 (income while a resident of Canada), and $B2 net income while not a resident of Canada

When calculating the refundable medical expense supplement, taxcycle used income from both spouses, $A + $B1. I filed the return in this situation.

Got the assessment back from CRA, they assess the amount base on income from both spouse as well, but used worldwide income for spouse B. Total income is $A + ($B1 + $B2).

Client refund become less :(.