WCB and FormT90

[gail02791]

I am  status indian receiving interest income which is tax exempt if earned on native land.  I check the box on T1 Pg1 at Tax Exempt- Indian Act.  I complete the T5's  for the amounts and also enter that aggregate amount on Form T90 to offset the income

I receive a survivor pension from deceased husband. I enter that via T5007 and it automatically got inserted on the T90 IF you have checked the Page1 tax exempt query noted above.   I know WCB payments are non-taxable and deducted at Line25000 when a person does not also use Form T90.  Form T90 is for income exempt under the Indian Act . TurboTax is using a shortcut and incorrectly so.  To confirm, I unchecked the Tax Exempt- Indian Act box on T1 General Page1 . Sure enough  - WCB then appeared on the lines 14400 and 25000. 

Question:   Shouldn't WCB  impact Line 23400 via the entry at 14400  so it is included within the threshold amounts for the clawback calculations??  Is there ever a situation that a payment from WCB is  taxable??? 

[gail02791]

To clarify further - it seems to me that if the WCB is a survivor pension or long term disability, as opposed to a temporary work related WCB claim, the survivor pension/disability amounts should not be punted from the Summary page and Line 14400 and Line 25000.  My thought is that according to the instructions at the top of the T90, amounts on the T90 are used to calculate the Canada workers benefit,  provincial or territorial benefits and the Canada training credit limit for the next tax year if these benefits are applicable.

A further complication to this query - IF  earned interest T5's are not entered on both the T5 form and then as an aggregate amount on the T90 Line10,  CRA may issue a re-assessment from their matching department assuming the tax payer did not report T5's since the keying summary used by CRA to input data from an e-filed return may/will not show the T5's.