The Taxprep Optimization

Taxprep will compare the benefit to the parent with the credits given up by the child.

For the parent, Taxprep compares the total of:

• the increase of the tax credit respecting the work premium because of the designation of the child over 18.

For the student, Taxprep compares the total of:

• the tax credits respecting the work premium.

If the program determines that the benefit is greater for the parent than for child, the tax credits respecting the work premium amount will be brought to zero in the child’s return.

If the program determines that the benefit is greater for the child than for the parent, the amount for a child over 18 enrolled in post-secondary studies will be brought to zero and this child will not be designated in the parent’s Schedule P.

In all cases, a diagnostic will advise you of the best tax situation.

If you do not want the program to do this calculation for a specific child, you must clear the applicable checkbox in the Family Profile form (Jump Code: FAM) of the parent’s return. If applicable, the program will grant the credits in the parent’s return.