Family tax calculation - using actual cpp amount even though it is more than maximum ?

[stkbeech]

I have 2 jobs and because of that I overpaid CPP (more than maximum amount and the system calculates credit for the extra pay). However when this system calculates family tax cut amount, it seems it is using paid cpp amount (more than maximum) and not using adjusted cpp amount. (I also did manually calculation so I notice that.) . Does someone know if it is correct calculation ??

[TurboTaxJeffrey · Accepted solution]

I am not sure how the software would be calculating for the full amount of CPP paid...here is a link to the S1A, which is used to calculate the family tax cut.

http://www.cra-arc.gc.ca/E/pbg/tf/5000-s1a/5000-s1a-15e.pdf

How was it you had calculated the amount of family tax cut yourself?  And are you taking into account the deduction to net and taxable income due to the employer portion of your self employed CPP?  Remember that whatever portion of CPP is showing for line 310 on your Schedule 1 for your self employed contributions, the same amount will show as a deduction at line 222 of the T1.

[Leeanne-TurboTax]

Good afternoon stkbeech

http://www.cra-arc.gc.ca/gncy/bdgt/2014/qa10-eng.html

The above link defines what the family tax cut is.  I am not seeing the calculations.

This is so new, I believe the best people to answer would be the CRA

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[Delphision]

In order to be eligible for the family tax credit, all other deductions must be used first.  Your CPP over-payment will be included in the calculation.

[davidbmaurice]

CPP overpayment is a refundable credit, therefore is not included in the calculations for Family Tax Cut.  Family Tax Cut factors in non-refundable credits, as these will affect the tax liability...but CPP overpayment does NOT affect tax liability.