Curmudgeon
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Posts posted by Curmudgeon
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Did you make at least a $1,666 contribution to your RRSP?
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You can't.
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If you put $1,000 into the cell, you will get a $3,000 deduction for 2023 and will carry a $1,000 contribution forward to be used in future years. if you leave the cell blank, your unused $1,000 in contribution room will be carried forward automatically to augment the future contribution limit and you'll get a $4,000 deduction in 2023..
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If the total cost of the investments did not exceed $100,000 during the year, a T1135 isn't needed. Not sure what you are doing since taxes paid on foreign income isn't reported on a T1135.
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These are the efile error codes. They might be related.
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Did you check your 2021 NOA to make sure the code didn't change. I've seen code changes.
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At one time it meant there was a problem in the T4A(P) form. Usually box 16 was wrong. Don't know if it still means that.
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It might relate to an error in the date of birth. Also check your SIN.
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Foreign trades have to be reported in $CDN. There is no currency function in software for this reason:
Converting Foreign Amounts to Canadian Dollars
The foreign exchange rate used to convert the foreign currency transaction into Canadian dollars is either
the rate in effect on the date of the transaction, or the average annual exchange rate for the taxation year as quoted by the Bank of Canada on the particular day or on the closest preceding day for which a spot rate is quoted, as per the definition of "relevant spot rate" in s. 261(1) of the Income Tax Act.
When assets, including investments, are purchased or sold, the exchange rate in effect on the date of the transaction should be used. Dividends received throughout the year can be converted at either the transaction date rate or the average annual exchange rate for the taxation year, but the method used should be consistent from year to year.
The Income Tax Act says to use the relevant spot rate for the day on which the particular amount arose, for converting to Cdn$. Whether you use the settlement date rate or the trade date rate, you should be consistent in doing this for all purchases and disposals in every year. Regardless of which date is used for the exchange conversion, the settlement date is the date of acquisition or disposition.
CRA previously indicated in their information on Line 12700 capital gains (this is the old web page from September 26, 2022, from archive.org) that the exchange rate or annual average exchange rate in effect at the time of the sale could be used when converting the proceeds of disposition (not cost of purchases) to Canadian dollars. This information has now been removed from their information on Line 12700 capital gains, so it would not be advisable to use the average rate for converting proceeds.
https://www.taxtips.ca/filing/reporting-foreign-transactions.htm
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I don't know what's causing the difference in results but since the information is on a T5008, reporting it on the t5008 is sufficient.
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Line 13199 is the proceeds from the sale of securities. Check your Schedule 3, Capital Gains (or Losses).
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What if I went over my RRSP deduction limit?
If you contribute more than $2,000 over your deduction limit, you'll have to pay a tax of 1% per month on the amount you over contributed.
You have 90 days after the end of the year to submit the T1-OVP 2022 Individual Tax Return for RRSP, PRPP and SPP Excess Contributions form to the CRA. You’ll use this form to calculate your penalty tax.
You can lower the penalty tax by withdrawing the over-contribution from your bank account and returning it to your RRSP as soon as possible.
If you want your bank to refund your over-contribution without charging the regular tax on RRSP withdrawals, you’ll need to ask the CRA to certify the over-contribution amount by filing a T3012A form right away. It might take some time, so if you don’t want to wait for a T3012A form to be approved by the CRA (which might be the case if the penalty tax is adding up) and if you don’t mind having tax withheld, you can make a regular withdrawal from your RRSP instead.
Although you’ll need to report the amount you took from your RRSP as income when you file your return, you can claim an offsetting deduction so your over-contribution doesn’t raise your taxable income for the year. For example, if the rest of your taxable income this year is $50,000, and your bank refunded $10,000 of an over-contribution to your RRSP, your total taxable income without an offsetting deduction will be $60,000. However, if you claim an offsetting deduction for your over-contribution, this will bring your taxable income back down to $50,000.
You can claim an offsetting deduction by submitting the T746 form when you file, as long as:
- You reasonably expected to claim a deduction for the contribution, either in the year you made the contribution or the year before; and
- You didn’t make the contribution with the plan to withdraw it later and deduct the offset amount.
https://www.hrblock.ca/blog/how-it-works-rrsps-the-first-60-days-and-more/#first60
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Missing that the RRSP contribution tear is not the calendar year but runs from March 1 to March 1.
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The RRSP contribution year is not the calendar year. It runs from March 1 to March 1 and therefore contributions made in the first 60 days apply to the previous calendar year.
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No. Ufile and similar tax software are Netfile only.
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Hard to follow what you are saying. For instance, FIG4 show $26k+ not $31k+ for tuition, and with taxable income of $52k+, $7.8k of tax credits won't yield zero taxable income. Keep in mind what is important is the total tax owed between you and your spouse. Compare the total tax bill letting Ufile have its way compared to your modifications.
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In efiling error 49 means there is an invalid character in the address. May be connected to that.
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The student has to use the tuition credit until there is zero taxable income and then the remainder can be transferred.
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Can't you just add the Sell to ... to the security name in the name box? If it fits, it will show up exactly as shown in the example.
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Try this out, it should work. Presumably the LTD payments are on a T4. On the Ufile T4 page, go down to near the bottom to Other Information. In the drop box, go to the bottom and select Wage loss replacement contributions. Put the amount of the premiums in the associated box.
Generate the tax return to see if the premiums are being taken off income.
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What Ufile says:
T2209 - Federal foreign tax credits
Generated automatically based on the entries for foreign income.
- In Interview setup tick Foreign income or foreign property
- Select Foreign income & property
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Margin account interest
in Credits and deductions
Posted
Yes, do the same for capital gains.