Autofill My Return = Huge balance owing to Revenu Quebec

[Bianca]

My province of employment is Ontario but I live in Quebec. For the 2022 tax year, I used Autofill My Return for both the CRA and Revenu Quebec. It generated a fed/prov refund of about $20k. Didnt think too much about it because I made extra tax payments every pay. But last week I received a new NOA from RQ stating that I owe them a balance of $35k for the 2022 tax year! How is this possible when i didnt even get a $35k refund? RQ said the Autofill likely resulted in the CRA not transferring my taxes to Quebec due to a glitch in the Autofill process. What should I do? 

[clw]

Autofill saves typing in data, but you still need to scrutinize the slips that are downloaded for accuracy. Slight differences in payer names can result in doubling up of slips, thus doubling income. Most CRA slips download correctly to their Quebec equivalents, except for Quebec income tax withheld. Personally, I download CRA only and add the RQ data manually.

[Geo123]

Hello Bianca,

Revenu Quebec tax data download

When Quebec residents download BOTH their CRA tax slips using CRA auto fill (AFR) as well as their Quebec slips using Tax Data Download (TDD), some documents may be generated  in duplicates.

Why will some data be duplicated while others won't be?

The reason why this data is duplicated is that the issuer has used two different names, one for the federal slip and another for the Quebec slip. Tax slips issuers are not required to register the same name for the federal and Quebec slips.

For example, a federal T3 slip from "Royal Bank of Canada" and an RL-16 slip are issued by the same issuer, but writing under a slightly different name as "RBC Banque Royale".

UFile will read two different names and therefore the federal slip will be accepted as well as the Quebec slip. Therefore, the program will generate duplicate data for certain income items.

This situation will unfortunately result in amounts greater than the actual amounts, in turn generating duplicate income amounts and consequently more tax payable?

We recommend that all users thoroughly check their federal return and Quebec to note these duplicates, as this will affect the tax return.

Also, we recommend you to use only one data download method, whether it is the CRA's (AFR) or Revenu Québec's (TDD).

UFile users must manually delete the duplicate page and enter the missing data manually on the other page.

[TFB]

When you work in Ontario and live in Quebec, your employer deducts Canada & Ontario provincial income taxes.  Once you have filled all your data in UFile, regardless of manually or automatic download, you will have a large Canadian refund and a large Quebec amount due.  There is an option in UFile (and the Canada income tax form), to transfer most of your Canada refund to pay your Quebec income tax.  You will still have a balance owing to Quebec after that transfer (Quebec has a higher tax rate then Ontario).  Once you file both income taxes, you will still have to send a check for the balance owing to Quebec before 30 April and wait for the refund from Canada.  If you have a spouse that also files Quebec income taxes and would receive a refund, you can reduce the amount of your check to Quebec by that amount.  In the end, you will probably still have to send a check to Quebec. 

Officially, you do not have to pay Quebec the amount due in installments because you can argue that you are taxed 100% at source on your income.

I have been doing this for almost 20 years now.  Doing it this way you are not loaning any money to the governments interest free.