How can I check a projected tax bill that seems too high?

Start with the Taxes table for the person and year in question. Select that year from the TIME MACHINE result to see its detailed cash flow and tax calculation. For the current year, check whether you are viewing the rest-of-year projection or a Year Check-in full-year report.

1. Review the taxable-income breakdown. Check employment and pension income, interest and dividends from non-registered investments, registered-account withdrawals, and realized gains. A withdrawal can increase taxable income even though it is not external income in the cash-flow report.

2. Check for duplicated inputs. Investment distributions are calculated from holdings, and account withdrawals come from accounts and automatic instructions. Entering those same amounts again in INCOMES counts them twice.

3. Review the current-year additional information: investment income and gains already realized, RRSP net contributions or the Check-in deduction and withdrawal fields, and taxes and deductions already paid. Withholding tax is a payment toward the tax bill; it does not reduce the gross income to report.

4. Check the profile’s province and the classification of expenses intended to receive supported tax deductions or credits. Review any Alternative Minimum Tax setting in PREFERENCES if applicable.

Compare the same year and the same dollar view. For amounts caused by a future sale or withdrawal, use the detailed account and property activity to trace the taxable transaction. See additional-information Help and detailed cash-flow Help.