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Returning Member
posted Mar 14, 2023 10:50:35 PM

Lower income spouse received the DTC transfer from a dependant instead of the higher income spouse which your software says should occurr?

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3 Replies
Level 3
Mar 16, 2023 12:20:23 PM

The Disability Tax Credit Transfer (DTC) is non-refundable, which means it can only be used to reduce taxes owing. In the case of the DTC, it is first claimed by the person who was accepted as eligible by the Canada Revenue Agency (CRA). This person has submitted a written request to the CRA to be able to transfer any unused portion to another, sometimes a spouse. This request must be signed and include details of the support they provide for the basic necessities of life. The amount of income of that person does not matter if higher or lower than the person claiming the DTC. 

 

For further guidance please see our TurboTax FAQ: How do I claim the Disability Tax Credit transferred from my dependant?

 

Thank you for choosing TurboTax.

Returning Member
Mar 16, 2023 10:32:16 PM

This answer is entirely irrelevant. They are asking why did the DTC  from the dependant transfer to their Wife who makes less income than them.

 

Turbotax employees have repeatedly stated that turbotax's software automatically applies the DTC from a Dependant to the higher income earner parent. In this case, it should be the Father and not the Mother.

 

Yet, the software transferred it to the lower income earner. No one has been able to give a proper answer.

Moderator
Mar 18, 2023 10:18:22 AM

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