I just received a CRA audit for 2021, 2022 and 2023.
All three audits resulted in an error with Ontario CARE tax credit.
I now owe a substantial amount + interest.
I checked the software and found the issue.
I am using TurboTax Canada Standard edition.
In the 2021 edition, the software calculated the CARE tax credit and showed the amount in form ON479.
If you check form ON479 it tells you to complete form ON479-A to calculate the amount even though it already has calculated the amount for you. Unfortunately, if you search for forms, there is no ON479-A.
In hindsight, I noticed that there is a form called ONCARE which should have been named ON479-A.
Even though I am filing a joint return with my spouse, TurboTax defaulted to only calculating the credit using the income from the lower earning spouse. You have to go to the ONCARE form and select that there are two or more supporting persons, and one is your spouse. Once you do this, the credit amount is calculated using the household income.
I don't understand why the software wouldn't just default to two supporting persons, when you are filing a joint return.
Also, why would you even know to check the calculation? Am I expected to manually check every calculation?
The same issue existed in the 2022 and 2023 versions.
I checked the 2024 version and noticed that they corrected the form name.
I haven't checked to see if the calculation defaults to the household income.
I consider this to be a TurboTax issue, and I am going to request a refund for the interest charged by the CRA which is close to $1800.00
Let me know if you will do the same!
