CWB and FHSA

[user17755016875]

Hi, 

I am doing my daughter's income tax and she is not entitled to the CWB because her earned working income is too high.  When I add a deduction for her FHSA she is allowed the CWB. As well, she receives more of a refund for medical expenses. The same is happening on the Quebec income tax. It appears the program is reducing her earned working income with the FHSA deduction, which entitles her to more money back. On the CRA website it says the FHSA deduction should not reduce the earned working income. I have spoken to a supervisor at Turbo Tax and he advised the program is working as designed.  Any information on this issue would be appreciated. 

Thanks. 

[TurboTax_Susan]

Do you have a link to where it says the FHSA deduction should not reduce the earned working income? Because according to the 2025 T1 form, the FHSA deduction is applied on Line 20805, to everything in Total income Line 15000.

[user17755016875]

Hi. Thank you for responding. The chat bot on the CRA website gave me this information. I contacted the CRA and the Quebec government today and they both confirmed that Turbo Tax is working correctly. I am sorry for taking up your time. Again, thanks for responding.