T1 Guide: Line 45400 - Refund of investment tax credit

Entering this Amount (from Forms):

Entering investment tax credit information

If it applies, complete the Alternative Minimum Tax section of the interview.

If it applies, complete form T691, Alternative Minimum Tax.

Enter the information from your federal T-slips in the T-Slips entry window.

Important:

TurboTax transfers most amounts from your T-Slips to Form T2038, Investment Tax Credit (individuals). However, depending on the Investment Tax Credit (ITC) code that applies to your situation, you may have to manually enter some amounts.

For example, Box 194 of T5013 is automatically transferred to Form T2038, under Code 5. However, amounts in Box 186 or 188 of your T5013, or Box 41 of your T3 need to be entered again directly on Form T2038.

Open Form T2038. To find this form, use Form Lookup and enter the keyword 2038.
If you have unused investment tax credits from previous years, enter the balance on line 1 of Part F, Carryforward chart.
When completing Part A:
Decrease your investment cost by the amount of any reimbursement, inducement, or government or non-government assistance.

If a partnership or trust made the investments, enter only your share.
To report a qualified expenditure incurred under an agreement entered into before February 22, 1994 for scientific research and development carried out in one of the Atlantic provinces or the Gaspé Peninsula, enter the amount of the expenditure on line 67120. If the amounts qualify for the transitional relief rate, enter the amount of the expenditure on line 67140.
TurboTax claims the allowable credit for 2023.
If you want to claim less than the maximum allowable this year and carry forward the difference, override the amount on line E (or line G, if minimum tax applies to you).
For example: If the amount on line E is $35,000 but you want to carry forward $20,000, press F2 and enter 15,000 on line E.
If you claimed an ITC for a child care space but the space is no longer available, see Investment tax credit for child care spaces in Part B, and complete Part C, if it applies.
If you have an excess ITC recapture on SR&ED, enter it under the applicable rate in the Recapture of ITC on SR&ED expenditures of Part C.
If you are carrying back the ITC you earned in 2023:
1. Review the amount available to carry back on line H (in Part D).
2. Enter the amount to carry back in Part E.
3. Enter the date in this section and sign it after printing.

TurboTax shows any repayment for the recapture of ITC above line 40600 on Schedule 1. Although the CRA does not include a separate line for this amount on Schedule 1, TurboTax includes this line to help you see how your federal tax is calculated. The recapture is also added to line 40600 of Schedule 1.

TurboTax transfers the credit for 2023 to line 41200 of your Schedule 1.

If you are eligible, TurboTax automatically claims the refund of unused investment tax credit on line 45400 of your T1 General.

The remaining unused credit available to carry forward to next year is shown in Part F.

Tip: Next year, transfer your return to automatically carry this forward.

Reduce the capital cost for capital cost allowance purposes by the amount of the ITC.

If you are applying for a Scientific Research claim, you must also complete Form T661Claim for Scientific Research and Experimental Development Expenditures Claim. You can download this form from CRA's CRA Forms and publications web page.

Entering this Amount (from Interview):

Line 41200: Investment tax credit

You'll have an amount on line 41200 if you were eligible to claim an investment tax credit (ITC).

If you qualify, TurboTax also claims any ITC refund (on line 45400 of your T1 General) and includes any recapture of ITC in your federal tax amount.

To review and confirm you claim of the investment tax credit:

Select X in the upper-right corner to close the Help window.
In the upper-right corner of your screen, select Find.
In the Find window, type Investment tax credit.
Select Investment tax credit from the list, and select Go.