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Line 423 Family Tax Credit, doesn't show up

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Hi,

 

I've been using uFile Online for many years now.  This year I'm planning to claim the Family Tax Credit (if it is put into force).  I entered all my information into uFile and indicated I wanted to claim the Family Tax Credit.

 

However, when I get to the results page, nothing shows up on Line 423 for the Family Tax Credit.  I indicated I wanted to claim, but answered that my spouse's income was NOT nil for all 3 related questions.  On her return, she indicated that her spouse (me) would claim the credit, and answered that my income was NOT nil for all 3 related questions.

 

I downloaded Schedule 1A from CRA and manually calculated the value of the tax credit for my family and I should be eligible for an amount.  However, uFile is not showing anything on Line 423.  Am I missing something?

 

Has this feature been implemented, or is uFile waiting until the Family Tax Credit is actually put into law before it does the calculations?

 

Thanks

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On October 30, 2014, the federal government introduced a Family Tax Cut, a non-refundable tax credit of up to $ 2,000 for couples with minor-aged children.

 

This new Family Tax Cut enter into force for the 2014 and subsequent taxation years.

 

To be eligible for this new credit, you must meet the following conditions:

 

You were a resident of Canada on December 31 of the year (or on the date of death);

You have an eligible spouse or common-law partner for the year who has not claimed the Family Tax Cut;

You have a child who is under 18 at the end of the year who ordinarily lives throughout the year with you or your eligible spouse or common-law partner;

You were not confined to a prison or similar institution for a period of at least 90 days during the year;

Neither you nor your eligible spouse or common-law partner became bankrupt in the year;

Neither you nor your eligible spouse or common-law partner elected to split eligible pension income in the year; and

Both you and your eligible spouse or common-law partner file an income tax and benefit return for the year.

 

For more information, visit the following link:

 

http://www.cra-arc.gc.ca/gncy/bdgt/2014/qa10-eng.html

 

Note that this is not an income splitting between spouses, but a tax cut for families. We recommend you to study Schedule 1-A, as well as page 2 of Schedule 1 of the federal return to make sure you claim the maximum tax cut for the family.

 

To claim this non-refundable credit, the spouses must file their returns with the same software.

 

Please follow the procedure below:

 

1 - In the file of the family head, in the "QuikClik Navigator" on your left choose the item "Spouse interview type". You must choose "Complete Information (Recommended)", otherwise the program will not calculate Schedule 1-A, which determines the Family Tax Cut.

2 - Return to the "QuikClik Navigator" on the left side of the screen, select the "Controls";

3 - In the page on your right, choose "Schedule 1-A - Family tax cut" section and for the line "Claim the family tax cut?" From the drop-down menu, choose the option that is appropriate for your situation. Only one person can claim this non-refundable credit;

4 - You must confirm that you have a child under the age of 18. On the next line, select "Yes" from the drop-down menu to confirm that you had a child under the age of 18 at the end of the year.

5 - Again in the "Maxback Control" page answer the other three (3) questions from the "Schedule 1-A - Family tax cut" section.

 

Schedule 1-A of the federal return will be generated by the program in the file of the person who will claim the Family Tax Cut and will indicate on line 21 the tax credit for the Family Tax Cut.

 

If you forgot to answer one of the questions, a Warning will be generated under the ''Results'' tab displaying the questions you forgot to answer, such as ''You have to confirm that you had a child under the age of 18 at the end of the year. Click here.'' By clicking the link, the program will take you back to the ''Maxback Controls '' page and a red arrow will indicate the line or lines to correct.

 

Please ensure that you have made the necessary corrections in the file, otherwise you will not be able to file your return via NETFILE.

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We are sorry that under the CRA rules UFile must require that the taxpayer answers all the following questions in order to allow the calculations and the schedule appear. MaxBack will always assume you want the best result.

 

Return to the "QuikClik Navigator" on the left side of the screen, select the "Controls";
3 - In the page on your right, choose "Schedule 1-A - Family tax cut" section and for the line "Claim the family tax cut?" From the drop-down menu, choose the option that is appropriate for your situation. Only one person can claim this non-refundable credit;
4 - You must confirm that you have a child under the age of 18. On the next line, select "Yes" from the drop-down menu to confirm that you had a child under the age of 18 at the end of the year.

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Thank you for your replies.

 

As far as I an tell, I satisfy the eligibility criteria.  I have checked this carefully.

 

Furthermore, I have carefully followed the directions above and the program still does not calulate anything for the Family Tax Cut (line 423).  I have even tried to change my answer to the question about confirming that I have a child under 18 to "No" and to "< Select >" to test if the Results page would generate an error or reminder, but it doesn't seem to have any impact.

 

I also notice that nothing is generated in line 367 for Amount for children born in 1997 or later.  My child was born in 2014.

 

For the other 3 questions under Maxback Controls for the family lead I entered: No, Yes, Yes.  My spouse did make an income above the basic exempted amount, but it was significantly lower than my income.  That is why my manual calulations in Schedule 1A indiated that I should have an amount one line 423.

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I'm experiencing the exact same thing as the o.p. I've also contact UFile Support about this issue. I'm 99.9% certain that I satisfy all the requirements for this tax cut. I think there's something wrong with the software.

 

If anybody knows a work around or if a fix is in the works, please let me know.

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In my case (not sure if this was true for the o.p.), I had to add my son (dependent) into Ufile even though I have no intention of submitting a tax return for him (he's 6mo old). It is not just enough to answer "Yes" to the question asking you to confirm you have a dependent under the age of 18.

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I truly do not understand how to input the information under family tax cut.

 

I chose let MaxBack decide. Then I chose Yes, and then No, No, No.

 

I did this on both my return and my spouses. The credit shows up I the results but there are error messages on both our returns.

 

Both of us have income so answer I am not answering yes to verify that our income was NIL.

 

I confused. Can someone please tell me what is wrong.

 

Also, I have ensured that my spouses return is a complete return and the schedule 1A still does not show up in my return.

 

Any help is greatly appreciated.

 

 

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Hello,

 

If you go in your tax return (or your wife return), you will see schedule 1A. Line 198 and 199 of this schedule should be 0. That is why you need to answer "Yes" to the questions if you want to claim this credit.

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Here is the fix, was mentioned above.

You need to add your child as a dependent for it to work. in the interview, just click, "Add family member" and put in your childs information.

 

In my opinion this is a huge flaw in the software, if you answer yes to that question, it should ask you if you have dependant children and prompt you to include them.

its also where you will input the sports credit and daycare credits.

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Hello Bmansdad

 

This is not a flaw in the software.  You must add all family members to your file. That is clear in all documentation.  This way, UFile is able to look at the family situation as a whole and ensure the credits for children, childcare etc, etc are used by the parent that can use it best (or who must use it in the case of child care).  That is how MaxBack gets you the best refund.

 

For that very reason, other software cannot offer this assurance,

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Hello,

 

AS per CRA, you can claim this credit if you were married or living in a common-law partnership, and you and your spouse or common-law partner:

  • were not living separate or apart because of a breakdown in your relationship for a period of 90 days or more including December 31, 2014;

  • were both residents of Canada on December 31, 2014 (or if either person died in the year, at the date of death); and

  • you both file a return for the year this credit is claimed.

You or your spouse or common-law partner must also ordinarily live throughout the year with your child who is under 18 years of age at the end of the year. Because of a joint custody arrangement, your child may have ordinarily lived with both you and your former spouse or common-law partner throughout the year.

 

Therefore, there is no flow in the software because in order to claim the credit you have to be eligible for it based on the tax law given above. To claim the family tax cut you need to have your spouse/common-law partner as well as your child who is under 18 in your tax file. Morever, you need to answer all the questions under "Controls" page appropriately. Ufile will tell you under the "results" tab what questions have to be answed as "yes".

 

Note that: You cannot claim this credit if:

  • you are confined to a prison or similar institution for a period of 90 days or more during the year;

  • your spouse or common-law partner is claiming the credit for the year;

  • either you or your spouse or common-law partner became bankrupt in the year; or

  • either you or your spouse or common-law partner has elected to split eligible pension income.

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I was having the same issue, but found the solution...

 

But, a couple of things first:

  1. The (?) buttons are mostly useless on the controls page. They simply duplicate the descriptive text already on the controls page.
  2. The wording for the last question under Family Tax Cut regarding separation of spouses is incorrect. It reads:
  • Answer YES to this question IF you were married or living in a common-law partnership at any time during the year AND you have been living separate or apart because of a breakdown in your relationship for a period of less than 90 days including December 31, 2014
  • According to CRA, the separation must be for MORE than 90 days. See: http://www.fin.gc.ca/n14/data/14-155_1-eng.asp

Anyway, my solution was discovered when I chose YES to the question:

 

  • "If applicable (click ? for details), please select Yes to confirm that the spouse or common-law partner amount is NIL. (see your Schedule 1-A, line 498)"

 

I chose YES, even though I am claiming the spousal amount according to my results page (line 303) and generated my return, then reviewed the Schedule 1-A (Family Tax Cut form) generated by UFILE (see the blank one at http://www.cra-arc.gc.ca/E/pbg/tf/5000-s1a/5000-s1a-14e.pdf ). I found line 498 as referenced in the question above and found that 498 is the spouse's column of the spousal amount line. So even, though I was claiming the spousal amount in my column there (which was a considerable amount), Line 498 as referenced in the question was indeed NIL (or blank).

 

The question as worded gave me the perception that I had to opt OUT of claiming the Spousal amount (using the "Are you eligible to claim the spousal amount (line 303) on your return?" question at the top of the controls page) in order to qualify for the Family Tax Cut. Based on UFILE's reference to Line 498 of Schedule 1-A, I don't have to.

 

In the end, I am:

  1. Claiming the spousal amount on my return
  2. Answering yes to confirm that "spouse or common-law partner amount is NIL. (since line 498 of Sched. 1-A generated is indeed blank)"
  3. Receiving the Family Tax Cut

 

And my return has jumped substantially. So as long as the question's wording, referring to line 498 of Schedule 1-A is accurate, and UFILE is generating the Schedule 1-A properly, CRA won't be knocking down my door.

 

Cha ching! Thank you Harper for the Family Tax Cut!

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