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Notice: The information on this page is only for users of Personal Taxprep 2018. If you are using Personal Taxprep Classic 2018, consult the help available in the program. |
Federal Dividend Tax Credit
The federal dividend tax credit represents 15.0198% of the taxable amount of eligible dividends and 10.0313% of the taxable amount of dividends (other than eligible dividends). The program calculates the total dividend tax credit based on the amount of dividends in line 120 of the jacket.
Federal Foreign Tax Credit
Net foreign income that is not earned from a business is deducted from the portion of income that, under a tax treaty, is not taxable in the foreign country or is deductible as non-taxable income in Canada (included on line 256).
Net income is the income on line 236 plus the amount minus the following amounts:
- Canadian forces personnel and police deduction (line 244);
- Stock option and shares (line 249);
- Other payments (line 250);
- Net capital losses of other years (line 253);
- Capital gains (line 254); and
- Foreign income deductible as non-taxable income from a prescribed international organization (included on line 256).
The basic federal tax used for the federal foreign tax credit calculation is the tax calculated on line 429 of Schedule 1, plus the federal dividend tax credit (line 425) and the overseas employment tax credit (line 426), minus the refundable Québec abatement (line 440) and federal refundable first nations abatement (line 441 on the return for resident of Yukon).
See Also
Federal Income Tax and Benefit Guide - Lines 120, 331 and Minimum tax