frankjm001
New Member

Why does TT use a 1.38 multiple to calculate taxable amount of dividend for amount to be entered on line 120 of return when information on internet suggests a lower rate?

What source does TT use to determine the multiple for calculating the taxable dividend amount for line 120?

TurboTaxSusan
Moderator

Troubleshooting

TurboTax uses the 1.38 multiple (138%), because that's what the CRA uses to determine the taxable amount of eligible dividends ("gross-up"). Non-eligible dividends are "grossed-up" by 1.17 (117%). This amount is then used to calculate the tax payable and the dividend tax credit at both Federal and Provincial levels.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...