Case ID# [phone number removed] (You say it is resolved but it is not)
TurboTax 2023 Results in Alberta Residents Paying Unneeded Tax
I am a retired Chartered Professional Accountant who specialized in taxation. I use TurboTax software to prepare tax returns for me and my wife. I wish to point out a deficiency in your 2023 software that results in Alberta residents paying more tax than needed.
Prior to 2023, it was advantageous to claim all charitable donations on one return rather than splitting them up between spouses. This was because the federal and Alberta donation tax credits on the first $200 of donations were lower than for donations above $200. For federal taxes, the credit for the first $200 is 15% and 29% for donations above $200. The credit for Alberta taxes on the first $200 was 10% and 21% for donations over $200.
However, in 2023 that has changed for Alberta residents. The Alberta tax credit on the first $200 of donations was increased to 60% versus 21% for donations over $200. This means an Alberta couple with charitable donations should make sure each person claims at least $200 of donations to minimize their taxes. Having each spouse claim at least $200 of donations will reduce their combined taxes by $50 versus if one of them claims all of the donations. Their Alberta taxes will go down by $78 = $200 x (.60 - .21) while their federal taxes will go up by $28 = $200 x (.15 - .29), for a net tax reduction of $50.
Your software does not permit splitting the donations claim between spouses unless each return is completed separately which is not feasible if one wishes to take advantage of pension income splitting, maximizing medical expense claims etc.
This deficiency should be corrected as you are making each Alberta couple with charitable donations overpay their 2023 taxes by $50. This despite your claims of “Taxes Done Right” and Maximum Refund Guaranteed.”
When I spoke to an agent on February 29, 2024 regarding my case, she did not understand the issue. So I requested that a more senior person contact me so I could explain it in detail. However, TurboTax sent me an email (to which one cannot respond) saying they have closed my case # [phone number removed] even though no one has called me and the issue is still unresolved. I phoned in again today, March 1, 2024, and spoke with Victor, who was very helpful, and he helped me access the community site to post about the deficiency.
I am requesting that a more senior person from the technical team call me to discuss this.
