# Wrong calculation by software

**URL:** https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585
**Category:** T1
**Created:** [April 25, 2021, 10:52am UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585 "2021-04-25T10:52:34Z")
**Posts on this page:** 11
**Page:** 1

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### Author: ![guptatax](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/guptatax/32/932_2.png) [@guptatax](https://www.protaxcommunity.com/u/guptatax)
#### Post date: [April 25, 2021, 10:52am UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/1 "2021-04-25T10:52:35Z")

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I received NOA from two customers showing  
“we changed the amount due to calculation mistake”  
Do any of us experiencing this problem?

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### Author: ![snoplowguy](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/snoplowguy/32/2535_2.png) [@snoplowguy](https://www.protaxcommunity.com/u/snoplowguy)
#### Post date: [April 25, 2021, 11:56am UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/2 "2021-04-25T11:56:23Z")

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You probably need to be a little more specific in what they claim was calculated incorrectly. I know is normal and a long time peeve the CRA will change the FDTC for a client who does not have enough income to use all of the dividend tax credit. They issue some type of misleading statement like “we have changed your dividend tax credit”.

Sometimes, failing to report certain income the CRA catches upon initial assessment will cause the NoA to report there were calculation errors.

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### Author: ![guptatax](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/guptatax/32/932_2.png) [@guptatax](https://www.protaxcommunity.com/u/guptatax)
#### Post date: [April 25, 2021, 12:13pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/3 "2021-04-25T12:13:56Z")

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Hi there,  
I sent you both NOA, CRA changed Federal and Provincial tax calculation both. There is no dividend tax credit or reporting less income situation.

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### Author: ![Arliss](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/arliss/32/52_2.png) [@Arliss](https://www.protaxcommunity.com/u/Arliss)
#### Post date: [April 25, 2021, 12:20pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/4 "2021-04-25T12:20:04Z")

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They also include that statement when there is a lump sum CPP benefit, no matter how small, included in the total CPP income and the special calculation they do works to the taxpayers benefit. Again not an error but they include that statement.

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### Author: ![guptatax](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/guptatax/32/932_2.png) [@guptatax](https://www.protaxcommunity.com/u/guptatax)
#### Post date: [April 25, 2021, 1:01pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/5 "2021-04-25T13:01:46Z")

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I know it, but if they do this they use to write it specifically but NOA is showing  
“Because of a calculation error, we changed your federal tax payable to----. As a result, your total payable has changed”.

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### Author: ![Arliss](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/arliss/32/52_2.png) [@Arliss](https://www.protaxcommunity.com/u/Arliss)
#### Post date: [April 25, 2021, 1:16pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/6 "2021-04-25T13:16:31Z")

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All I can say then is it is not likely the software.

Did the tax payable change?

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### Author: ![guptatax](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/guptatax/32/932_2.png) [@guptatax](https://www.protaxcommunity.com/u/guptatax)
#### Post date: [April 25, 2021, 1:36pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/7 "2021-04-25T13:36:37Z")

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Customer received less refund.

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### Author: ![guptatax](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/guptatax/32/932_2.png) [@guptatax](https://www.protaxcommunity.com/u/guptatax)
#### Post date: [April 25, 2021, 1:37pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/8 "2021-04-25T13:37:11Z")

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It means tax payable is changed

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### Author: ![tsolowczuk](https://avatars.discourse-cdn.com/v4/letter/t/ecae2f/32.png) [@tsolowczuk](https://www.protaxcommunity.com/u/tsolowczuk)
#### Post date: [April 25, 2021, 2:33pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/9 "2021-04-25T14:33:04Z")

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Have you had a chance to trace through the difference(s) between what was filed and what was assessed? This will tell you why the catch all phrase “wrong calculation” was invoked. There is always the Notice of Objection route if needed.

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### Author: ![Versa](https://avatars.discourse-cdn.com/v4/letter/v/53a042/32.png) [@Versa](https://www.protaxcommunity.com/u/Versa)
#### Post date: [April 25, 2021, 3:58pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/10 "2021-04-25T15:58:07Z")

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My client also received a strange message on his NOA:

“We found a calculation error in your federal tax credit for donations and gifts, so we changed your credit from $70 to $76.” I thought that was odd. Not a huge difference but it’s TaxCycle’s calculation.

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### Author: ![kozakworld](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/kozakworld/32/1594_2.png) [@kozakworld](https://www.protaxcommunity.com/u/kozakworld)
#### Post date: [April 25, 2021, 5:30pm UTC](https://www.protaxcommunity.com/t/wrong-calculation-by-software/4585/11 "2021-04-25T17:30:57Z")

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I’m with Teresa on this one. I always do a comparison with what I filed to the Detailed Assessment (or Option C) to try and narrow down where the error was generated. Was it an income issue, expense issue, non-refundable tax credit issue. The NOA simply does not give enough information, so you have to use the Detailed Assessment (option C) to fill in the blanks and help read between the lines.

Sometimes a phone call to CRA further resolves the issue. And as Teresa stated, there is always the Notice of Objection route if needed.
