I am filing taxes in Ontario, Canada, using simpletax.ca which has been a super useful platform. I am struggling to understand how it is calculating my refund, however.
From 2013, I have $16,473 in unused education federal amount, and $14,620 in unused provincial amount.
This amounts to $3,208, as it takes my (federal amount * lowest marginal federal tax-rate) + (provincial amount * lowest marginal provincial tax-rate).
I have seen online that that is how the unused education carryover is handled, but from descriptions of it, shouldn't it be wiping out my entire taxes payable that is deemed as refundable? And if it is just taking the lowest marginal tax-rate to calculate refund amounts, doesn't this mean I will just keep getting a smaller and smaller carryover amount, but never fully using it up?
Any insight on the matter is much appreciated!
I have filled out my info using the example below as a guide:
Assume Income of 61000 Fed. Taxes owed 10,343 Basic Personal Amount 11138 CPP Contributions 2425 EI Premiums 913 Canada Employment Amt 1127 Total: 15604 Multiply by 15% 2340 Basic Personal Amount 11138 CPP Contributions 2425 EI Premiums 913 Canada Employment Amt 1127 Tuition Credit 16473 Total: 32077 Multiply by 15% 4811
I am getting deducted the 2340 amount - shouldn't it be 4811?