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Curmudgeon

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  1. Like
    Curmudgeon got a reaction from EdwardFranklin in Contributions made in the first 60 days of the year can be used towards the previous year’s or current year’s contribution amount?   
    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
  2. Like
    Curmudgeon got a reaction from JohnA in T1135 - can I add as many lines as I need in Section 7?   
    If the shares are "held in an account with a Canadian registered securities dealer", the individual companies don't have to be listed, only aggregate amounts for the top three countries.
     
  3. Like
    Curmudgeon got a reaction from JohnA in Ufile not claiming eligible dependent - but should   
    The dependent child age is up to 18 years. Once the child is older than 18, you may be able to claim them if they have a mental or physical infirmity.
    https://www.olympiabenefits.com/blog/claiming-dependents-on-taxes-in-canada-who-is-eligible
  4. Like
    Curmudgeon got a reaction from JohnA in Ufile not claiming eligible dependent - but should   
    From the link you report:
    In addition, the dependant must also be one of the following persons by blood, marriage, common-law partnership, or adoption:
    your parent or grandparent your child, grandchild, brother, or sister under 18 years of age  your child, grandchild, brother, or sister 18 years of age or older with an impairment in physical or mental functions or
    For the purposes of the eligible dependant credit, the dependant may be your parent or grandparent, or a child under the age of 18 who is your child, grandchild, brother/sister through birth, adoption, marriage or common-law partnership.
    https://turbotax.intuit.ca/tips/claiming-the-eligible-dependant-credit-5107
  5. Like
    Curmudgeon got a reaction from LuckyLea21 in Deceased Family Head   
    You have to do a new return for her. Can't delete the family head from a Ufile return.
  6. Like
    Curmudgeon got a reaction from techgeek22 in Claiming carry forward capital loss   
    Yes
  7. Like
    Curmudgeon got a reaction from JohnA in Pension Income Splitting   
    In Interview setup, go to Pension and click the blue arrow. Pick split pension income. Set up what you want there. Before doing this, however, calculate the total tax payable by yourself and spouse with MaxBack. Do the same after setting what you want. I think you'll find that the total tax burden is less with MaxBack.
  8. Like
    Curmudgeon got a reaction from JohnA in Ufile not allowing electronic submisison for a deceased person Year of Death 2021 Tax year 2021   
    I believe you are both right. The final return now can be E-filed but E-filing is done by a tax preparation business. Ufile and similar software Netfile and we can't yet netfile a final return. Will have to paper file.
  9. Thanks
    Curmudgeon got a reaction from oldufiler in Undeclared Medical Expenses for previous years not calculated   
    Under the Medical, disability, caregiver heading, have you selected Last date of medical expenditures and put in the date. If not, the program assumes the calendar year.
  10. Thanks
    Curmudgeon got a reaction from Dalia Fishman in Selling and purchasing a principal home   
    No need to report the purchase. If sold:
    Click Interview setup. Go down to Investment income and expenses. Click the blue arrow by Capital gains (or losses) and capital gains history Select Personal use property (including the principal use residence) Bob's your uncle.
  11. Like
    Curmudgeon got a reaction from G-Hiotis in Conflicting messages for T1135 e-file   
    It can be submitted electronically. No worry about signing.
  12. Like
    Curmudgeon got a reaction from Denis K in How to report T5008 as Income (and not capital gain/loss)   
    Day traders usually report their gains as business income. For instance
    https://fbc.ca/blog/calculating-taxes-when-day-trading-canada/
    https://www.daytrading.com/taxes/canada
  13. Like
    Curmudgeon got a reaction from Denis K in home office expense - temporary flat rate   
    If you are looking for the T777s, it's in Employment and other benefits.
  14. Thanks
    Curmudgeon got a reaction from PeteH in Post T1-adjustments and previous net losses carry forward   
    Should work.
  15. Like
    Curmudgeon got a reaction from TaxQuestions in Tax Paid by Installments and Tax Transfer - UFILE 2021   
    In Interview setup go to the bottom and check off Tax paid by installments and tax transfers. It will then shoe up in the left-hand side menu.
  16. Like
    Curmudgeon got a reaction from Susan-Tulip in Elderly dependent with $0 income - could not net-file   
    Under T4A and pension income there is a confirmation option.
  17. Like
    Curmudgeon got a reaction from Sukhjinder in Where to enter the Examination fees paid for bar eligibility for a law student   
    I would hit the + sign by Box 26 to add another line. Put in the description and amount.
  18. Like
    Curmudgeon got a reaction from Sukhjinder in Where to enter the Examination fees paid for bar eligibility for a law student   
    You claim the examination fees as a tuition expense on T2202. The fees have to be $100 or more but GST/HST paid can be included in the fees.
  19. Thanks
    Curmudgeon got a reaction from Robert18 in Student Loan interest credits and Education Amounts   
    If nothing works, contact the technical people and explain how expiring credits are not being applied first. There may be a quick fix.
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