How can I subtract my personal amount from my income?

[anastasia34]

Hello!

I'm preparing my file as a self-employed, and a question is appeared in process.

Why my basic personal amount is not subtracted from my taxable income? For instance, my taxable income is 50,000.00, and personal amount is 11,327.00. I should pay taxes from amount of 50,000.00—11,327.00=38,673.00, right? But system doesn't subtract it on my Return Summary page.

How can I subtract my basic personal amount from my taxable income?

Thank you.

[Delphision · Accepted solution]

You can't.  That is not how it works.  Your amount of tax payable is determined by your income. Your basic personal amount is a non-refundable tax credit that is multiplied by 15% to get the amount of the credit.  Non-refundable tax credits do not reduce your taxable income.   The tax credits reduce the amount of tax that you have to pay.

[anastasia34]

Thank you so much for this clarification!

"Multiplied by 15%" means 15% of basic personal amount, correct?

[Delphision]

Right.  CRA does not give up our money willingly.

[anastasia34]

:)))

Thank you!

[Martine-TurboTax]

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