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?
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?
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.
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