Taxable Benefits, Tax Credits, and Deductions

The Income Taxes page within Snap allows you to customize default settings and add taxable benefits, indicate if a client is eligible for additional federal and provincial non-refundable tax credits, and enter applicable tax deductions for the client.

Select Scenario Setup -> Settings -> Income Taxes.

Standard Tax Credits:

Certain tax credits are applied by default and listed under the section Apply the following tax credits.  If you do not wish to apply these default credits, you can uncheck the checkbox. 

These amounts may be adjusted based on the individual's total Taxable Income.

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To add additional non-refundable tax credits, (such as a disability tax credit) you can enter the amount in the fields as shown in the following screenshot. The amount entered in the additional non-refundable tax credits field is:

• automatically multiplied by the lowest tax rate to calculate the amount to reduce the federal and/or provincial tax.
• applied for all years of the projection (unless you enter a From Age or To Age to reflect that the credit will begin some year in the future, or that it's expected to stop in a future year).
• indexed with the General Inflation rate (unless you enter a percentage value in the Indexing Rate field).

This example shows a disability tax credit being entered for a resident of Ontario for the 2025 tax year.  If the non-refundable tax credit is transferrable, you may wish to enter the credit under the Income Taxes settings for the spouse.

To see the impact of the Additional Non-Refundable Tax Credits on the federal and provincial taxes, view the Income Tax Details for a Given Year table.  From the Planning page, click the amount of tax paid that year.  (Make sure the Income Tax section is expanded by clicking the arrow in the section header.) You'll see the non-refundable tax amounts and tax credits for provincial and federal taxes.

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The amount entered for Additional Tax Deductions will decrease the taxable income by that amount for all years of the plan (unless you enter a From Age or To Age to reflect that the deduction will begin some year in the future, or that it's expected to stop in a future year).  Both federal and provincial tax calculations will be impacted.

The amount entered for Additional Taxable Benefits increases taxable income by the specified amount each year of the projections (unless you enter a From Age or To Age to reflect that the benefit will begin some year in the future, or that it's expected to stop in a future year, for instance when the client retires).  This will increase the tax your client pays and decrease the available cash flow.

Values are indexed with the General Inflation rate unless you enter a percentage in the Indexing Rate field.

You can see details about these Tax Deductions and Taxable Benefits in the table described above (Income Tax Details for a Given Year) or in the Taxable Income Details table.  Click the blue icon at the top of the Taxable Income column to open.

The Other column includes the Additional Tax Benefits entered and the Additional Tax Deductions are included in the Deductions column.

Included values for each column are described if you hover over the "?" icon.

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