I have a husband and wife that have a joint T5 with dividend income on it. The program is calculating TOSI on this income. From my research it appears this is applies only to income split with a minor. Am I missing a box or something to get this to go away? They are both seniors and have birthdates typed in. I thought initially it was because the slip was labled joint in the CRA download but the slip in tax cycle was 100% the husband. I fixed that and it simply split the TOSI tax to show half on each return… Or does it have something to do with the fact that the husband’s top marginal rate is over 33% but the wife’s isn’t? This is new this year as I recall there being a kiddie tax/attribution rule for split income between parents and minors but not between adults. It only does it on this return for some strange reason and I have other returns with joint slips like this although I 'd have to go check if the top marginal rate has an under/over 33% split as well.
Just checked the slip again and it is not actually joint but is labled “Subordinate Voting Shares” . Does this mean it is subject to TOSI and “shared” with the trust even though the tax payer is over 18?
The online blurb I found was " Under the current income tax rules, the TOSI applies the highest marginal tax rate (currently 33%) to “split income” of an individual under the age of 18. In general, an individual’s split income includes certain taxable dividends, taxable capital gains and income from partnerships or trusts." This does not apply to a senior couple.