Married in 2020, ineligible to NETFILE, spouse income is NOT NIL

[Wil W]

I am baffled. My daughter got married in Aug2020. Both have taxable income, but UFile claims her husband "cannot currently NETFILE the federal return. Please review the following reasons, and make corrections..."

You have to confirm that your spouse's adjusted taxable income is NIL
You have to confirm that your spouse's provincial/territorial adjusted taxable income is NIL.

Why am I forced to respond YES to either of these questions to allow a NETFILE submission? My daughter can NETFILE, but my son-in-law apparently is not eligible and must submit a printed return. Is this a bug with UFile for Windows or is there something I can do to correct this?

 

Thank you in advance for your speedy response. 

[Wil W]

No, this checkbox is NOT selected for either person. Both have T4's and other income. 

[Baqar Kazmi]

I have the same issue and do not understand. I used to file it for several years now and never had this problem.

[RafaelaGM]

I'm having the same problem here

[Wil W]

Hello UFile! I posted this 2 weeks ago and have not received a solution to this problem even though other people are also experiencing the same issue. Time is running out, taxes are due in 3 weeks! I cannot find any such rule on CRA, therefore this must be an issue with the software. What is the fix? Why must the new head of household submit a paper version? Why can he not submit a NETFILE? She is not a dependent, she is his wife/partner. Maybe if more people add to the post with a "me too", then maybe UFile will fix the problem or provide a solution. I've been using UFile for my whole family since 2010, but I will switch if this problem cannot be resolved.

[Curmudgeon]

In the Spouse Interview section, do you have it set to Complete information?

[Wil W]

Yes. This is my daughter. I have complete information. 

[Curmudgeon]

Did you add your son-in-law to your family file. If you do this, he has to be a dependent and is not recognized as your daughter's spouse. They need their own file.

[Wil W]

Thank you Curmudgeon. I quickly realized that in the beginning and created a new file with him as head of household. The file only contains the information for the two of them. Nothing was imported or transposed as Ufile does not offer such utilities. I created from scratch. I used the download from CRA option to gather their information. I hope this helps. They could use the refund asap. 

[Curmudgeon]

Did you do a change of marital status for both?

[Wil W]

Yes I did. August 15 2020

[Curmudgeon]

In Review, does the Federal summary of you son-in-law look OK? Employment income, taxable income, etc?

[Wil W]

Thank you for your continued efforts Curmudgeon!

I'm not sure how to respond as I am not a tax accountant and I do not want to divulge too much detail publicly. What is OK? My son-in-law earned $$$ amount, CPP deduction is $165, resulting in a net income and taxable income that is $165 less. There are tax credits for CPP, EI, Canada employment amount and my daughter's tuition and medical expenses. That looks normal to me. There is also tax credits for donations to the church. The summary shows all the same values for line 42900 (basic federal tax), 40600 Federal Tax, line 41700 (line 40600-41600) and line 42000 (Net Federal tax). Line 42800 shows the Provincial (BC) tax. Adding the federal and provincial numbers yields line 43500 - total payable. Line 43700 (Total income tax deducted ) does NOT equal line 43500 (Total Payable) - there is an $1,100 difference. 

I'm no tax expert, but I think that looks normal to me. Can you tell me more specifically what I should look for to determine if it is "OK"?

[Curmudgeon]

Just wanted to confirm that the return information looks like what you entered, no data errors. I'm running out of ideas.

On the left side menu go down to controls. Go to the bottom of the controls form and put in No in the first two boxes and see what happens after clicking Next.

[Wil W]

Thank you so very much for ALL your efforts @Curmudgeon!! I navigated to the bottom of the Controls section and it is already set to No-No-Blank.

So this problem is still UNRESOLVED

How do you get the attention of the UFile support staff? At the beginning of this thread @Nawal, who is a UFile Admin, responded, but his/her suggestion was of no value as I had already indicated that both people had earned income in 2020. There are other users claiming they have the same experience. Do you have to be a Premium customer that does tax returns as a profession to get help?

I reviewed the CRA website on NETFILE eligibility (https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/netfile-overview/eligibility.html) and there is is NO mention that your spouse's income must be NIL.

Edited April 12, 2021 by Wil W
Added link to Gov't of Canada website to support my argument

[Curmudgeon]

Use the UFile Support assistent in Help. You might get a response. Otherwise, my idea bank has run empty.

[Wil W]

Thanks again @Curmudgeon. That's where I started before coming to this community and it simply refers me to the 'help' text which is of no help. 

Next I will create a new file, entering all data from scratch (not download CRA data) and see if that still generates the error message. If no error message, then I will change his marital status and run the review again to see if it forces me to add my daughter to the file (it shouldn't). If successful, I will add my daughter to the file. I will update this thread with my findings as there are other people with the same problem and taxes are DUE IN 19 DAYS!!!

[winnie]

same problem.. Help...

[LauraC]

I am having the same problem

[Wil W]

This topic was sent to support@ufile.ca on Mon April 19 @ 1:05pm PACIFIC. In my support request, I quoted this forum thread. If I make any progress, I will be sure to post it here. TAXES DUE in 11 DAYS!!!

[windsurfer51]

Is the person you can't netfile or efile for in bankruptcy status ?

[Wil W]

4 minutes ago, windsurfer51 said:

Is the person you can't netfile or efile for in bankruptcy status ?

No, he made a good income in 2020

[windsurfer51]

We e-file returns and it is beyond me why we have to claim Yes to the topic below, if you don't answer yes it won't netfile or eFile i have never seen any change to the tax return and nobody has ever reported a problem with that. The same thing happens when you have a single client with an eligible dependent who you claimed had no income, then when you want to file the return you will get the same message and have to select yes again that the child has no income. Makes no sense to me.

 

You have to confirm that your spouse's adjusted taxable income is NIL
You have to confirm that your spouse's provincial/territorial adjusted taxable income is NIL.

[MacReady]

1 hour ago, windsurfer51 said:

We e-file returns and it is beyond me why we have to claim Yes to the topic below, if you don't answer yes it won't netfile or eFile i have never seen any change to the tax return and nobody has ever reported a problem with that. The same thing happens when you have a single client with an eligible dependent who you claimed had no income, then when you want to file the return you will get the same message and have to select yes again that the child has no income. Makes no sense to me.

 

You have to confirm that your spouse's adjusted taxable income is NIL
You have to confirm that your spouse's provincial/territorial adjusted taxable income is NIL.

Same issue.

Can anyone confirm if + yes to the two conditions above allows for success netfile? No go on my end.

But what I did observe, however, is that 1/2 netfiles were accepted - the summary file/pdf of results incorporates both individuals I am filing for (husband and wife), .. and indicates that CRA received request/processing.. 
Can I assume that b/c both individuals are on the return/successful submission all is well?

 

 

[MacReady]

Still perplexed.

Any solutions? 

[Wil W]

30 minutes ago, MacReady said:

Still perplexed.

Any solutions? 

Hi @MacReady, I'm not sure I understand what you stated above. The goal is to NETFILE so the return can be processed expeditiously without hesitation. Even though you are combining the two people in 1 UFile file, it is still 2 separate NETFILE uploads to CRA. You could answer 'YES' to the NIL questions, but that would be incorrect and I'm sure the application would detect that a non-zero value was provided for Taxable Income or Provincial Taxable Income. 

As the originator of this thread, I submitted a support request to UFile on MON APR 19 @13:05 Pacific and 27hrs later, I still have not received a response, not even an acknowledgement. 

[MacReady]

6 minutes ago, Wil W said:

Hi @MacReady, I'm not sure I understand what you stated above. The goal is to NETFILE so the return can be processed expeditiously without hesitation. Even though you are combining the two people in 1 UFile file, it is still 2 separate NETFILE uploads to CRA. You could answer 'YES' to the NIL questions, but that would be incorrect and I'm sure the application would detect that a non-zero value was provided for Taxable Income or Provincial Taxable Income. 

As the originator of this thread, I submitted a support request to UFile on MON APR 19 @13:05 Pacific and 27hrs later, I still have not received a response, not even an acknowledgement. 

Thanks for your prompt response and clarifying the NETFILE workflow/goals.

I took a look at past submissions in my uFile history for the same individuals and the questions we are denoting as being problematic/preventing submission weren't even answered for prior returns (left blank)! Go figure! We await good news

[MacReady]

1 hour ago, Wil W said:

Hi @MacReady, I'm not sure I understand what you stated above. The goal is to NETFILE so the return can be processed expeditiously without hesitation. Even though you are combining the two people in 1 UFile file, it is still 2 separate NETFILE uploads to CRA. You could answer 'YES' to the NIL questions, but that would be incorrect and I'm sure the application would detect that a non-zero value was provided for Taxable Income or Provincial Taxable Income. 

As the originator of this thread, I submitted a support request to UFile on MON APR 19 @13:05 Pacific and 27hrs later, I still have not received a response, not even an acknowledgement. 

To Add.

For the problematic return....under 'NetFile'.. upon clicking on 'file rejection' .... states the following:

Rejected

Result:16

 

 

The Canada Revenue Agency's records indicate that your 2020 tax return was already received ---------->Contradictory

 

 

The federal income tax return is ineligible for NETFILE.

Please verify, under the Tax Return tab, whether the federal return is required for filing and, if so, rectify accordingly:

• The error and warning messages at the bottom of the page.
• The error and warning messages within the Review tab under the category Messages.

If we then navigate to 'Review' ... -> important messages 

Electronic filing errors

 

"You have to confirm that your spouse's adjusted taxable income is NIL. 

You have to confirm that your spouse's provincial/territorial adjusted taxable income is NIL. 

 

... and ANOTHER CONTRADICTORY  statement under 'maxback analysis'

 

"T his federal return has been transmitted and accepted." (for both parties)...

 

 

 

 

[MacReady]

1 hour ago, MacReady said:

Thanks for your prompt response and clarifying the NETFILE workflow/goals.

I took a look at past submissions in my uFile history for the same individuals and the questions we are denoting as being problematic/preventing submission weren't even aswered for prior returns (left blank)! Go figure! We await good news

 

[MacReady]

Update:

Removed spouse

re-added

Choose yes yes  or no no - whatever combo

attempted to submit 

Your account is locked. 

 

[LarryW]

I have the same problem. My wife has income, and we used Netfile last year. Now her file is rejected. i cannot answer yes to the question of nil income, as she has income to declare.

 

[Route66]

The only solution for me so far, is under MxBack Controls, choose "family head" to claim all in the question "How do you wish to handle the transferable deductions and credits?".

The problem is that my returns are way lower now.

[Route66]

I've got another solution. Filled under 15min using SimpleTax. 

[Wil W]

2 hours ago, Route66 said:

The only solution for me so far, is under MxBack Controls, choose "family head" to claim all in the question "How do you wish to handle the transferable deductions and credits?".

The problem is that my returns are way lower now.

This suggestion did not make any difference in my situation.... head of household (husband) still cannot NETFILE

[Wil W]

I checked for updates and updated to v24.21 released Apr 8, 2021 - still did not resolve the problem

I have tried leaving those control questions blank - did not resolve the problem, still cannot NETFILE for husband

It has now been 2 days and 9+ hrs since I submitted a support request to UFile and I still have not received even an acknowledgment or any response. I even double checked my SPAM folder - nothing!

I have been using UFile for 10 years for my family of 4. This past tax year, with the addition of a son-in-law I purchased the larger package allowing me to NETFILE 15 returns. 

9 days left until taxes are due!!!! Every day more and more people are posting that they are experiencing the same problem

At this point in time the BEST suggestion so far is from @Route66 ... "I've got another solution. Filled under 15min using SimpleTax."

[Wil W]

UPDATE: As I indicated earlier, I have now rebuilt the tax file from scratch. I entered all my son-in-law's information first. I did NOT download data from CRA. I tried to calculate taxes at this point, but it would not allow me because some options I selected during the interview require the spouse's information to be loaded. I then added all my daughter's information but did NOT download data from CRA. I end up with the exact same results... all calculation are correct and determine the same amount of refunds, but UFile still claims I CANNOT NETFILE my son-in-law's tax return!! 😡

It is now 2-1/2 days (60hrs) since I submitted a support request to UFile and I have not received any response at all, not even an acknowledgement! Taxes are now due in 8 days!!

I have concluded the best way to resolve this issue and file taxes on time and get money into the hands of a newly married couple is to switch to another tax software and attempt to get a refund from UFile. You have now lost my 10 years of loyalty!!! 🤬

[MacReady]

.
 

[Wil W]

I would like to give a shout out to @Nawal for the continued support. Nawal gave me directions via direct email on how to upload my tax file to UFile through the UFile application itself (instead of direct email as I did earlier) for support review. Minutes later, I still have not received an acknowledgement detailing a Support Reference (Ticket) number, but I will wait until this evening (when I'm not busy at my day job) before downloading TurboTax. Professional courtesy

[Wil W]

20 minutes ago, Wil W said:

I would like to give a shout out to @Nawal for the continued support. Nawal gave me directions via direct email on how to upload my tax file to UFile through the UFile application itself (instead of direct email as I did earlier) for support review. Minutes later, I still have not received an acknowledgement detailing a Support Reference (Ticket) number, but I will wait until this evening (when I'm not busy at my day job) before downloading TurboTax. Professional courtesy

To be fair and professional, I was too impatient and have since received a Request#.

I will update this thread with results

[Wil W]

HERE IS THE ANSWER - Thank You @Nawal

When I read the control question and the error message it stated "confirm that your spouse's (provincial/territorial) adjusted taxable income is NIL" so I naturally, not thoroughly reading the entire message line,  looked at line 26000 on the tax return that's labelled "Taxable Income". This is where my logic was broken! Pay special attention to the adjective "adjusted" taxable income. Because two people are compiling and submitting their returns together as a (married) couple, some values and credits are transferred from one partner to the other and that is the function of SCHEDULE 2. This detail is specified in the control question and error message, but I was too focused on the "taxable income" part of the statement.

When you setup a family unit in UFile, it automatically generates a Schedule 2. I have tried many ways to see and view Schedule 2 within the UFile app, but until you actually produce the Tax Return, I am unable to figure out how. If you know how, please share! I even navigated to the bottom of the interview where it says "where to enter?" and it just gives a short link and description without actually taking you to the form so you can see the calculation details.

Schedule 2 - Federal amounts transferred from spouse - Generated automatically where required if a spouse is setup within the family unit

 

So I guess you'll have to trust the system 😲

As @Nawalexplained and showed me...

In the Provincial Schedule 2 you take the value from line 26000 (taxable income) and subtract the sum of 3 other fields from a provincial schedule/form - in my circumstance it was BC 428. When you add lines 58040, 26 & 58560, they equal the same amount as the taxable income, therefore yielding
Spouse's or Common-law partner's adjusted taxable income (line 59120) = $0.00 aka NIL

Now don't ask me how you can see and verify this information in advance of those control questions. Maybe somebody can explain (for the benefit of the others who also claimed the same problem and the 400+ viewers of this thread) how you can substantiate/support your answers. Definite room for improvement in UFile.

 

I spent plenty of time and effort to maintain this thread and close it off with a respectable answer - please LIKE the post for greater visibility. Maybe UFile will improve their documentation or FAQ section.

[MacReady]

16 hours ago, Wil W said:

HERE IS THE ANSWER - Thank You @Nawal

When I read the control question and the error message it stated "confirm that your spouse's (provincial/territorial) adjusted taxable income is NIL" so I naturally, not thoroughly reading the entire message line,  looked at line 26000 on the tax return that's labelled "Taxable Income". This is where my logic was broken! Pay special attention to the adjective "adjusted" taxable income. Because two people are compiling and submitting their returns together as a (married) couple, some values and credits are transferred from one partner to the other and that is the function of SCHEDULE 2. This detail is specified in the control question and error message, but I was too focused on the "taxable income" part of the statement.

When you setup a family unit in UFile, it automatically generates a Schedule 2. I have tried many ways to see and view Schedule 2 within the UFile app, but until you actually produce the Tax Return, I am unable to figure out how. If you know how, please share! I even navigated to the bottom of the interview where it says "where to enter?" and it just gives a short link and description without actually taking you to the form so you can see the calculation details.

Schedule 2 - Federal amounts transferred from spouse - Generated automatically where required if a spouse is setup within the family unit

 

So I guess you'll have to trust the system 😲

As @Nawalexplained and showed me...

In the Provincial Schedule 2 you take the value from line 26000 (taxable income) and subtract the sum of 3 other fields from a provincial schedule/form - in my circumstance it was BC 428. When you add lines 58040, 26 & 58560, they equal the same amount as the taxable income, therefore yielding
Spouse's or Common-law partner's adjusted taxable income (line 59120) = $0.00 aka NIL

Now don't ask me how you can see and verify this information in advance of those control questions. Maybe somebody can explain (for the benefit of the others who also claimed the same problem and the 400+ viewers of this thread) how you can substantiate/support your answers. Definite room for improvement in UFile.

 

I spent plenty of time and effort to maintain this thread and close it off with a respectable answer - please LIKE the post for greater visibility. Maybe UFile will improve their documentation or FAQ section.

Awesome! Thank you to  al! 

[Supper Dad]

In case anyone is still wondering, all this means is that the spouse's taxable income (line 26000) is equal to or less than their federal non-refundable tax credits (excluding a few, such as donations and medical expenses), which means that they will have no federal tax to pay.  So, if you look at the generated Schedule 2 and see that this is the case (line 36100 is $0.00), then you just answer "Yes" to the question and you are good to go.

To be completely clear, this is not asserting that they have no income.  It is asserting that they have no federal tax to pay.

[SophiaQuinn]

On 3/21/2023 at 1:16 PM, Supper Dad said:

In case anyone is still wondering, all this means is that the spouse's taxable income (line 26000) is equal to or less than their federal non-refundable tax credits (excluding a few, such as donations and medical expenses), which means that they will have no federal tax to pay.  So, if you look at the generated Schedule 2 and see that this is the case (line 36100 is $0.00), then you just answer "Yes" to the question and you are good to go.

To be completely clear, this is not asserting that they have no income.  It is asserting that they have no federal tax to pay.

Great Explanation! Thank you.

[redwings712]

Hi, I have the same question.

My ex husband and I are separated (almost 2 years now, it is my second year filing as separated) and I have 2 questions.

Do I have to file with a spouse, without a spouse, or I can choose to do either? I'd prefer to file only me and my dependent kids, as I have almost no information about his 2023 income.

The second question I have is the same as the original question above.  I do not know what to answer for this "You have to confirm that your spouse's adjusted taxable income is NIL" as my ex husband isn't exactly open about this information and I am not sure if he will or will not have federal taxes to pay this year.

Shuold I just file based on what I think?