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gdb

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Everything posted by gdb

  1. When you say "...the clawback is entered on line 42200, recovery of social benefits, not as tax paid", do you mean that you get a T4A(OAS) like the one I posted that reports the clawback in box 22 as "income tax deducted", you enter that amount as "income tax deducted" on Ufile, but Ufile somehow figures out it's not garden variety Box 22 "income tax deducted" and sends it to line 42200 "recovery of social benefits" and not to line 43700 "total income tax deducted"? 'Cause it sure doesn't do that on mine.
  2. I don't disagree. The problem is Ufile doesn't appear to differentiate between OAS tax withheld and eligible pension income tax withheld in allocating a portion of the tax withheld as part of splitting pension income. After all, the tax withheld on a T4A(OAS) and a eligible pension income T4A-P are both set out in Box 22, so they're combined together, along with any other tax withheld from any other income on line 43700. It will hopefully not be an issue this year because Spouse A had enought tax withheld on his T4A-P to cover the full amount of the tax withheld allocated to Spouse B but that wasn't the case in a couple of previous years, leading to reassessment of Spouse B. I will be dealing with CRA on this matter in due course, but the issue I raised in my OP - that Ufile allocates T4A(OAS) tax withheld when calculating optimum split pension amounts - remains and I will be bringing the issue to Ufile's attention once CRA has confirmed the correct allocation.
  3. It is most assuredly not a data entry issue - I've repeatedly checked that the information from all T4A slips has been inputted correctly. It is equally clear Ufile transferred a portion of Spouse A's "income tax deducted" total from his T4A and/or his T4A (OAS), as Spouse B had no "income tax deducted" from any source - pension or otherwise - and yet line 43700 of her T1 shows a credit following Ufile's pension splitting (which, when added to the line 43700 total for Spouse A equals the total "income tax deducted" from Spouse A's T4A and T4A(OAS) slips). My suspicion is that this issue has something to do with the fact Spouse A has his OAS entirely clawed back, notwithstanding he still receives an annual T4A (OAS). As a result, he reports the full amount of OAS as income, but then also records the same amount of OAS as "income tax deducted". I find this curious, as the actual tax Spouse A would pay on his OAS if it wasn't clawed back is only 30-40% of the amount he's credited as "income tax deducted" in Box 22. This means he doesn't get any OAS income, but the fact the clawback is considered "income tax deducted" means he gets a $4500-$5000 credit towards his tax payable on his other income. I suspect that CRA denies the transfer of a portion of the "income tax deducted" that Ufile transfers to Spouse B because CRA considers it to have been transferred from the amount set out in Box 22 of Spouse A's T4A (OAS), notwithstanding there was an even larger amount of "income tax deducted" in Box 22 of Spouse A's T4A from his pension fund. I will be contacting CRA to clarify this issue and will provide an update.
  4. The pension income is set out on three T-slips - a T4A from Spouse A's registered pension plan, a T4A(P) (CPP income) and a T4A(OAS) (old age security). The "income tax deducted" is from the registered pension plan T4A and from the T4A(OAS). Because Spouse A's income is so high, his OAS is completely clawed back, i.e. he receives a T4A(OAS) with the full amount of OAS in Box 18/19 then the full amount of OAS in Box 22 as "income tax deducted", i.e. pension recovery tax. All T4A slips were correctly entered but when the Ufile split pension function is invoked, Ufile allocates some of Spouse A's "income tax deducted" to Spouse B on a pro-rata basis to the amount of split pension income itself. CRA has reassessed Spouse B twice in the last 3 years to deny her a credit for this allocated "income tax deducted", but have not made a corresponding adjustment to increase Spouse A's credit for "income tax deducted"
  5. Situation: Spouse A has high pension income and Spouse B has much lower pension income, such that splitting pension income between Spouse A and Spouse B results in higher combined refund. As part of the split pension calculation, UFILE appears to transfer a portion of the "income tax deducted" total from Spouse A's T4A slips to Spouse B in proportion to the split income amount, i.e. even though there was no income tax deducted at source for Spouse B, UFILE calculates a "income tax deducted" amount for Spouse B based on the amount of split pension transferred from Spouse A. CRA has reassessed Spouse B twice in the last few years on the basis Spouse B is not entitled to claim a portion of Spouse A's "income tax deducted" amount, notwithstanding the pension income form which the "income tax amount" was deducted was transferred to Spouse B. I assume CRA is correct, and UFILE's software incorrectly transfers a portion of the "income tax deducted" when pension income is split and, therefore, I need to override UFILE to leave all "income tax deducted" on Spouse A's return, notwithstanding that results in a higher refund to Spouse A and a higher tax payable to Spouse B.
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