Interest income is tax exempt if earned on native land. Check the box on T1 Pg1 at Tax Exempt- Indian Act. Enter WCB via T5007 but it automatically got inserted on the T90 IF you have checked the Page1 tax exempt query noted above. TurboTax is reporting the WCB incorrectly. Form T90 in this scenario is for interest income exempt under the Indian Act . To confirm, I unchecked the Tax Exempt- Indian Act box on T1 General Page1 . Sure enough - WCB then appeared on the lines 14700 and 25000. WCB payments are non-taxable entered at line 14700 and deducted at Line25000 when a person does not also use Form T90. WCB should impact Line 23400 via the entry at 14700 so it is included within the threshold amounts for the clawback calculations; non refundable credit(s) (ie Age amount)??
To clarify further - my WCB is a survivor pension and should not be punted from the Summary page and Line 14700 and Line 25000. 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 - IF earned interest T5's are not entered on both the T5 form and then as an aggregate amount on the T90 Line10, CRA might issue a re-assessment from their matching department who would assume 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.
Is there a workaround to report WCB correctly along with non-taxable interest income on a T90 ??
Gail
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