T1032 tax calculation & T4A RCA

I think on the T1032, in Step 5, the tax at Line O is not correct when there is a T4A-RCA that has a distribution that is eligible, but because of the threshold, it is not part of Line C, the eligible pension amount.

I have a client who has a T4A Box 16 pension about $90,000, T4RIF Box 16 of $16,000 and T4A-RCA Box 16 and Box 17 about $10,400. Tax deducted on T4A is $20,000 and on T4A RCA is $2,300.

In Step 2 of T1032, because the T4A and T4RIF total more than $98,661, the amount from the T4A RCA is not part of Line C, the eligible pension amount.

In Step 5, TaxCycle calculates the tax as $22,300, but it should be only the $20,000 deducted on the T4A, not the also the tax from the T4A RCA since the T4A-RCA distribution is not part of the eligible pension.

Thanks for the feedback…we will look at this for our next release.

~ Rob