Transfer of Disability Tax Credit

[gtip]

I agree with you. This is far from perfect. After all of this I am still not able to have the dependent claim the amount that can be transferred. When completing the worksheet on the dependent’s return, it shows the taxpayer’s income is too high to get the Disability Tax Credit. So now I have a situation where the taxpayer does not have enough income to use the DTC but has too much income for the dependent to claim it. I cannot figure it out now. Something seems screwed up with this. It shouldn’t be this difficult. 

[TurboTaxSusan]

If you are still not able to resolve this issue, please contact our phone support team at 1-888-829-8608.

[rbrtstn]

This doesn't work. Info is transferred from dependant but stays on dependants return as well. When the cra audits, you get a letter stating the following.

[rbrtstn]

Not correct. I did it this way and below is the cra response. My daughter was to get approximately $3600 back, ended up only $1800. 

[TurboTaxGinette]

Unfortunately, the Canada Revenue Agency has information on file that someone else is claiming the dependant.

In order to help you with this situation, we believe your best option is to contact our telephone support team for further assistance, as they have the option to view your screen to help. To contact them, please follow this link: Contact Us. 

You may need to show the support person all three returns, ie: dependant, spouse and yours.

​​​​​​​Thank you for choosing TurboTax.

[rbrtstn]

My wife and I are both on disability, TurboTax automatically claims the transfer of disability tax credits between the two of us. There is no option to change this, so the affected lines are automatically filled out. When filling out my daughter's return, we are dependants, so these credits are transferred to her return. Unfortunately TurboTax doese not remove them from our returns. The only workaround is to manually remove these amounts from the affected lines, schedules and forms. This editing makes our returns ineligible for netfile. Basically a waste of purchasing and using TurboTax. So much for the TurboTax guarantee.

[TurboTaxGinette]

The amount of the Disability Tax Credit (DTC) will always go on your return first to bring down the amount of taxes you owe. If the DTC amount is more than you need to lower your taxes, the excess amount can then be transferred to the person designated for the transfer on your DTC agreement. The important question is: who is the person entered on each of your Disability Tax Credit applications in your file at the Canada Revenue Agency (CRA)? If it is your daughter for each of you then make sure to click NO for the 3rd question seen below when asked "do you wish to transfer any remaining credits to your spouse". She will then transfer the left over amount on her taxes. If your daughter is not already included on the original application in your Canada Revenue Agency (CRA), you will need to make the change with the CRA and make an adjustment for the transfer. If you are each other's person to whom the left over amount was agreed to be transferred to then this is why you are getting each other's transfer when entered as seen in the image below. 

Thank you for choosing TurboTax.

[rbrtstn]

I used the standard version, and this screen and the third question do not appear. Standard just automatically fills in the amounts. See attached picture for only available options and the answers to the questions. Same on my wife's return.

Both my wife and I are retired, and our only income is cpp and oas. We don't need any of the disability amounts for tax reduction, and neither owe nor receive on our tax returns.

My daughter is allready on file with the cra as having us for dependants.

[TurboTaxBrenda1]

Please see the TurboTax video below that will show you how to claim the DTC.

How do I claim the Disability Tax Credit?

Thank you for choosing TurboTax.

[rbrtstn]

Not really an answer to the issue. Claiming is the easy part, this problem is about transferring the credit.