My daughter is self employed but went to college back in 2014. (She was 18).
Our previous accountant filed her taxes and I went back to review them due to tons of errors in other parts.
When I went to test / redo the taxes as he did them, I entered her income as 10,500 (what he said) and entered the T2202A form.
At $10,500, she would NOT owe taxes, as she is within the threshold.
However, when we added the T2202A form... it suddenly said she OWED $756 in taxes.
What I'm struggling to understand: We PAID her tuition cash. She did not take a loan / osap or anything... why on earth would it cause her to PAY taxes?
AND... it was even transferred to me to take the write off - and it STILL said she owed $756.
Completely stumped. Why on earth would this be??
It was NOT income in any way, but it's like it added it against her.
