TheTaxSmith
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Posts posted by TheTaxSmith
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Check your messages.
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Yes you can limit the CCA. It is an elective claim and can be reviewed each year and the claim can be limited from Zero up to the maximum allowed.
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Now for the Quebec issue. Did you live in Quebec and work in Ontario or New Brunswick? If so you need to select the correct T4 from the choices.
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Ok for dividends Ufile is optimizing your file based on a process that allows transfers. It's to your advantage. Ufile just wants you to be aware that it is taking place. Otherwise you would be questioning what is going on, which of course you are doing. Google dividend transfers between spouses and CRA. Or do a search for a previous post I did that explains it.
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What is the slip you have that reports the pension payout?
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It is important to understand that there are dividend transfers rules which allow a shift of dividends to an optimal amount between spouses. It's a very specific section in the Tax Act. It will result in overall less tax paid for spouses and the family group. Allication to the higher income taxpayer will use the dividend tax credit to its advantage instead of wasting it.
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Did you do a Search on the site to find a solution? Did you add a T2125 for self-employed income? Did you enter the commission income in Ufile's schedule for completing a T2125 form?
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Did you try completing Schedule 5 manually to test for the claim? https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/5000-s5.html
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Do any of these situations apply to you perhaps: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-30400-amount-eligible-dependant/what-situations-which-you-cannot-claim-amount-eligible-dependant.html
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Actually CRA will most likely add those T4A slips to your income and reassess. If the T4A was specific to your wife and not for the partnership you should have completed a separate business statement. There is a specific area on the T2125 business statement for amounts reported on T4A slips. Entering both the T4A slips and also entering the total of the slips in the T2125 allows CRA to match the T4A with business income.
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Hello AudraFast. In your daughter's file, Interview section, did you respond to the question is your child an eligible dependent.
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In the Interview section scroll down to the bottom and look for the carryforward section and tick off Losses of Prior Years. That will provide you with the data entry section.
Then scroll down in the list of forms (Index) look in the new section added under Losses of prior years, carrybacks. You will need to add form T1A - Request for Loss Carryback.
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To clear this up take a look at Step 5 on the T1032 Pension Split form. Review the tax at line 68040. That is the tax that is eligible to be be split from eligible pension income. Write that number down. Now go to the T-slips summary and look at the tax deducted from pensions eligible for the split. Add those taxes up and it will equal the amount from line 68040 on the T1032 form. If the two numbers are not the same then look at the difference and then look at the tax deducted from other slips. That will pinpoint the error. They should however be the same. In your previous post you stated that you had an eligible pension on a T4A-P slip. I trust that is a private or employer pension and not the CPP. The CPP income as reported on a T4A(P) slip is not an eligible pension for pension splitting. (That said there is a way to equalize Canada Pension Plan receipts, but it's not through the tax system.)
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It's a hit and miss situation with CRA. It depends on who looks at your file. Look carefully on the index to see if there is more than one T4A(P) slip. Since there are a possible number of slips in that category (3) you may actually have 2 identical ones.
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When you first set up your file using Ufile did you include carryover balances such as your CNIL balance? If you did was it done correctly? You should be able to look up your CNIL balance online with CRA. If not ask them by phone for a printed history and balance. If your CNIL balance is in negative territory, meaning prior year expenses exceed prior year earnings the availability for the qualified capital gains deduction will be limited. CNIL will not affect capital gain claims, only the potential deduction against them. Most people will never be able to take advantage of qualified capital gains deductions. The fact that you have an investment property means you have an annual adjustment to your CNIL balance. So go back and look at the history and reconcile the CNIL in your Ufile with the one that CRA has on file.
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Ok so just 2 entries to be made. The amount of OAS and the Federal tax deducted. Not an uncommon situation. There is no way any of that tax gets transferred with respect to the pension income split. Only the proportionate tax from eligible pension income for the purpose of pension splitting can be transferred between spouses. Eligible pension income and the corresponding tax withheld are the only amounts that can be used for pension splitting. The fact that CRA revises your file every year is the clue and calling them to ask why is the possible solution.
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Wait a minute. Spouse A records the OAS as income but also records that same amount as tax deducted? Is that what the slip reports? Is there an amount on the slip for income tax deducted in box 22? Is there an amount in box 20? The pension split will be affected by the OAS income and clawback only, not the tax deducted on the slip.
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To start, CPP is not an income allowable for the pension split. Did you use Autofill perhaps? Box 20 includes the amount from Box 14, so of course you only enter Box 14 amounts. Did you load 2 T4A(P) slips by chance?
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Wow you waited to the few hours before the tax deadline and have no criticism other than wanting a refund. Now that's helpful to the community, not!
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Bikora2020 ?
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Ok gdb, check back with me, TheTaxSmith, and Curmugeon as to the problem. We would be interested in what CRA says as well as possible data entry problems. We are here to help.
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Ok try deleting the slips you have entered one by one and see if you can netfile. When you delete one item and the problem persists then re-enter that slip and move on to the next for deletion.
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Interesting given that information. Ufile does a very good job at splitting pension income and transferring the proportion for income tax. I still suspect it's a data entry problem. But the fact that this happened in the last 3 years I would suggest you contact CRA and ask them why they are revising your returns from the way they are filed. Did you try that and if so what was their response? The fact that they revised the returns should inspire you to call and ask why.
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Ok so you entered to number of years personal use on the same form. That will produce a problem. Go back to the original approach and be ready for any challenges. I suspect you will not have a problem.
Filing for 2020 return for a deceased taxpayer and surviving spouse
in 2020
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The software handles that correctly. But a Rights and Things is a separate return with separate deductions. Best to paper file the Rights and Things. Expect problems from CRA but if you indicate in the Rights and Things return the split for up to death and after death for the income you will be ok. In the year of death you get to double up on some non refundable credits, therefore you complete a Final return as well as a Rights and Things return.