Canadian Software: Downloaded Standard Version: Ontario
Mathematical Calculation of Federal & Provincial Taxes and Medical Expenses vary dependent on filing individually - versus jointly as a couple - which affects both Federal and Provincial deductions and refund.
I have underlined the correct calculations and put a strike through on incorrect calculations.
Filing Separately
Medical Expenses: $1260.50
Federal & Provincial Calculations: 3% of net income (Line 23600) - $594.25 - Deduction $666.25
Preparing Return as a Couple
Medical Expenses: $1260.50
Federal & Provincial Calculations: 3% of net income (Line 23600) - $594.13 - Deduction $666.37
Federal and Provincial Tax on Taxable Income Filing Separately
Net Income_Line 26000_ $19804.40
Federal: 15% of net income -$ 2971.26
Provincial: 5.05% of net income (Line 26000) - $1000.32
Federal and Provincial Tax on Taxable Income Filing Return as a Couple
Net Income $19804.40
Federal: 15% of net income (Line 26000) -$ 2971.66
Provincial: 5.05% of net income (Line 26000) - $1000.12
In this example, if this individual prepares and files as a couple he will receive $1.02 more back in refund - but not because of any additional or separate deductions - but because he is using the software calculations in Turbo Tax that are correct.
The incorrect mathematical calculations filing as a single taxpayer will provide the government with an extra $1.02 that they are not entitled to. Extrapolate that over how many tax returns are being done on Turbo Tax and it is a nice extra slush fund that the government is receiving.
I also found errors in the online version of the software which I reported - but switched to the downloaded version hoping to see that it was correct - but it wasn't.
Turbo Tax needs to get this corrected. ASAP.
