  What's new for T1/T3 Internet version 12.10? |
The latest DT Max program update is now available for downloading. It features the fully functional T1/TP-1 program for tax years 1998 to 2008 and fully supports T1/TP-1 Efile. Also featured is the fully functional T3/TP-646 program for tax years 2003 to 2008.
Please note that all program versions are always made available on the Internet.
In this version...
About your DT Max licence key
DT Max T1
DT Max T3
About your DT Max licence key
As this release inaugurates a new production year, a valid licence key must be installed in order to have access to the latest calculation modules for DT Max T1 and T3, that is to say for years 2008 and 2009 respectively. If the registered licence key is expired, the following warning message will be displayed on the start up screen:
For an invalid DT Max T1 or T3 licence key:
"DT Max will run in "demo" mode until a licence
key is entered. You will be able to enter data and review returns, but you will
not be able to file them with the government."
DT Max T1
1. Technical changes
a) Option for source keywords (F8) in QuickTrack
This QuickTrack option available in DT Max which makes the fields of the
tax return multi-functional has been updated and is even more detailed than
before. As of tax year 2008, the source keywords option (F8) will be available
on a greater number of fields, making your research much easier.
b) Data editor
i) Validation for T4
As of tax year 2008, DT Max will no longer provide you with a validation
message for the T4 when you mark each entry as checked by selecting Mark
keyword as checked in the menu that appears when you right-click on
the amount or by pressing the "=" sign on your keyboard. A check
mark will appear next to the amount that has been verified. Keywords that
are affected by this change are:
T4:
CPP-Contrib (T4 box 16)
QPP-Contrib (T4 box 17) (RL-1 box B) (Relevé 1 case B)
EI-Premiums (T4 box 18) (RL-1 box C)
PPIP (T4 box 55) (RL-1 box H)
ii) Data entry improvements
Splitting the T5013/T5013A slip between spouses
DT Max now allows you to automatically split the T5013/T5013A slip between
spouses. DT Max will claim the amount(s) on the taxpayer's income tax return
according to percentage specified, and will allocate the remainder to the
spouse. Two new keywords have been added to perform the split within the
T5013/T5013A slip entry, OWN-%-SHARE and Spouse-Share .
Splitting of capital gains between spouses
DT Max now allows you to automatically split capital gains between spouses.
DT Max will claim the amount(s) on the taxpayer's income tax return according
to percentage specified, and will allocate the remainder to the spouse.
In order to perform the split within DT Max, two new keywords have been
added in the CAPITAL-GAIN keyword group, OWN-%-SHARE and Spouse-Share
.
Exchange rate listing in the data entry
As of tax year 2008, DT Max will list all the exchange rates within the
keywords Exchange.t and EXCHANGE.E through a drop-down menu. Select
the appropriate foreign currency from the list offered, and input next to
the currency the exchange rate indicated by DT Max. The rates published
by DT Max are the Bank of Canada average rates. Should you want to enter
a different exchange rate, simply input it next to the currency selected
from the drop-down menu.
iii) SmartStart client profile
This data entry tool offered within DT Max has been revised, and is now
a lot more detailed than before. As of the 2008 tax year, the SmartStart
client profile will have more sections to choose from, therefore rendering
your searches within this tool a lot easier.
c) T1013 form: two new items added
The following two new items have been added for consent form T1013 under
"Preferences", in the "Identification" option, under the
"Identification numbers" tab:
i) The Group ID, which is a six-character alphanumeric code, starting with
a G, that identifies a group of representatives as well as the name of the
group.
ii) The extension number for the telephone number has also been added under
"Preferences", in the "Identification" option, under both
the "Main address" and "Alternate address" tabs.
d) Colour printing and PDF files
As of tax year 2008, DT Max will offer the capacity to print and save tax
returns in colour. You can activate of de-activate both options under the
"Printing options" tab.
2. New forms, new slip as well as their corresponding keywords
a) New forms
Federal:
T2125 - Statement of Business or Professional Activities
This form combines both the previous form T2124, Statement of Business Activities, and form T2032, Statement of Professional Activities. It can be used to report business or professional income and expenses.
The previous two forms, T2124 and T2032, are now obsolete and will no longer be available for 2008 and subsequent tax years.
Quebec:
Schedule O - Tax Credit for Respite of Caregivers
Spouses or relatives who are providing care to a person living at home with a significant disability or who is receiving palliative care may claim a refundable tax credit for expenses incurred to obtain specialized respite services.
The credit is equal to 30% of the total expenses paid in the year for specialized respite services.
The maximum eligible amount for expenses is $5,200 for a maximum tax credit of $1,560 per year.
The tax credit to which a person is entitled is reduced if that person's family income exceeds $50,000 per year.
Keyword for this schedule :
RespiteCaregiver : Respite to a natural caregiver paid for the care and surveillance of a person with a significant disability.
Use this keyword to enter information in the file of the person with a significant disability or is receiving palliative care. If the keyword is entered in the spouse's file, DT Max will claim the tax credit for respite of caregivers in the other spouse's file. If the keyword is entered in a dependant's file, you may override DT Max's choice by using the keyword Transfer-OV in the dependant's file and by selecting the option "TP1 - Schedule O - Respite expenses of informal caregivers".
Three new forms are replacing the former TP-1029.MD.1, Registration for advance payments - Tax credit for home-support services for seniors and TP-1029.MD.2, Application for advance payments Tax credit for home-support services for seniors. They are :
a) TPZ-1029.MD.7.P - Application for Advance Payments Based on Rent and Services Included in Rent
Use this form if the senior person lives either in a senior citizens' residence or in an apartment building. You may use this form to apply for advance payments or to notify the government about an update in the senior person's information (for instance, a house moving).
b) TPZ-1029.MD.8.P - Application for Advance Payments for Services Included in Condominium Fees
Use this form if the senior person lives in an apartment that he/she owns in a condominium and if he/she applies for advance payments for services included in his/her condominium fees.
c) TPZ-1029.MD.9.P - Application for Advance Payments for Occasional Services
Use this form if the senior person applies for an advance payment of the tax credit for home-support expenses related to services that he/she receives once or several times a year. These expenses must not be related to services that are included in the rent, or included in the condominium fees.
Keyword for schedules TPZ-1029.MD.7.P, TPZ-1029.MD.8.P and TPZ-1029.MD.9.P :
Home-Support-Adv : Application for home-support advance payments (TPZ-1029.MD.7.P, TPZ-1029.MD.8.P, TPZ-1029.MD.9.P)
Use this keyword to apply for advance payments and select the option that corresponds to your application. In the cases where the senior person has a spouse, you may enter the keyword Home-Support-Adv in only one of the spouses' file, and therefore all subsequent applications in the year will have to be in that spouse's name.
Newfoundland and Labrador :
T1297 - Newfoundland and Labrador Resort Property Investment Tax Credit
You may claim this new credit if you invested in the development of an eligible resort property in 2008 and if you were 19 years of age or older at the time of the investment. You can carry the unused portion of the resort property investment tax credit forward for seven years, or back three years. However, the credit cannot be carried back to a year prior to 2006.
Keywords for this schedule :
RPITC : Investment tax credit for resort property [T1297 L.1]
RPITC-CF : Unused Newfoundland and Labrador resort property investment tax credit carryforward [T1297 L.2]
RPITC-CB : Unused Newfoundland and Labrador resort property investment tax credit carryback [T1297 L.10 & 11]
Manitoba:
MB428-A - Manitoba Family Tax Benefit
A new non-refundable tax credit, the Manitoba family tax benefit, has been introduced for Manitoba families. It replaces the previous Manitoba family tax reduction.
T1256-1 - Manitoba Community Enterprise Investment Tax Credit
A new non-refundable credit, the community enterprise investment tax credit, has been introduced for individuals who invest in eligible community enterprise investment projects.
Keyword for this schedule :
COMMUNITY-ITC : Manitoba community enterprise investment tax credit (Slip T2CEITC (MAN.)) [T1256-1 L.6093]
T1299 - Manitoba Book Publishing Tax Credit for Individuals
A new refundable tax credit, the Manitoba book publishing tax credit, has been introduced for eligible publishers.
Keyword for this schedule :
BookPublishing : Business name (T1299)
Saskatchewan:
SK479 - Saskatchewan Credit
If you applied for and obtained one or more graduate retention program Tuition Rebate Eligibility Certificate for 2008 tax year from the Saskatchewan Ministry of Advanced Education, Employment and Labour, complete this section and attach a copy of your eligibility certificate to your tax return.
Keyword for this schedule :
Tuition-Rebate : Year of graduation [SK479]
b) New slip
Federal :
RC210 - Working Income Tax Benefit advance payments statement
Keyword for this slip :
ADVANCE-WITB : Working income tax benefit (WITB) advance payments received [Fed. L.415] (RC210 box 10)
3. Forms added to the billing module
T1256-1 - MB community enterprise inves. tax credit
T1299 - MB book publishing tax credit
T1297 - NL resort property investment tax credit
Schedule O - Tax credit for respite of caregivers
TPZ-1029.MD.7 - Application advance payments Rent
TPZ-1029.MD.8 - Application advance payments Condo
TPZ-1029.MD.9 - Application advance payments Other
RC210 slip
Forms removed from the billing module :
T2032 - Professional income statement
TP-1029.MD.1 - Registration for advance payments
TP-1029.MD.2 - Application for advance payments
4. Modified forms
Federal :
a) T2222 - Northern Residents Deductions
The deduction for the residence has been increased to $8.25 per day if you are entitled to the basic amount only, and $16.25 per day if you are entitled to both the basic amount and the additional amount for the residence.
b) T4A slip/RL-1/RL-2
In order to make data entry easier, the reference codes for RL-1 box O have been added in the descriptions for keyword Other-Income.t .
T4A box 28, Other income
Three new codes have been added for this year :
1) [31] Registered disability savings plan
This amount will be added to the new line 125, Registered disability savings plan income (RDSP) on the federal tax return. As per the instructions from the government of Quebec, even if there is no mention of it in the 2008 Quebec Guide to the Income Tax Return, the registered disability savings amount will be added to line 178, Universal Child Care Benefit.
2) [32] Wage earner protection program
This amount will be added to line 104, Other employment income on the federal return and to line 107 on the Quebec return with code 2.
3) [33] Variable pension benefits
This amount will be added to line 115, Other pensions or superannuation on the federal return if you were 65 years of age or over on December 31, 2008, otherwise it will be added to line 130 Other income on the federal return and to line 122 on the Quebec return.
You will be able to select one of these new options for this amount from the drop-down menu of the keyword Other-Income.t
Note : The RDSP income is excluded from the income when calculating the GST/HST credit, the Canadian Child Income Tax Benefit and other similar benefits and credits from provinces and territories, the social benefits repayment (line 235), the refundable medical expense supplement (line 452) and the Working Income Tax Benefit (line 453).
c) T4RIF minimum amount (25% deduction Q250 Code 4, F232)
Following the 25% decrease of the minimum withdrawal amount from the Registered Retirement Income Fund (RRIF) for 2008, individuals who have already withdrawn an amount higher than the reduced minimum for 2008 may contribute again to their RRIF for an amount equal to 25% of the proposed reduction.
For those who will choose to contribute again, use the keyword
Taxable-Amt and select "Portion - direct or indirect transfer to RRSP" or "Portion - direct or indirect transfer to RRIF" depending on the case. The deduction will be entered on line 232 of the federal return and on line 250 point 4 of the Quebec return.
Quebec :
a) Credit for QST
The definition of a spouse as of December 31 for the credit for QST has been modified in order to take into account the fact that a spouse must be a resident of Quebec as of December 31 of the tax year to be recognized as such when calculating the credit.
b) Keying Summary for Quebec
TPF-1.W - Keying Summary for the Income Tax Return
TPF-1.X - Keying Summary for the Schedules
TPF-1.Y - Keying Summary for forms TP-128, TP-80 and TP-80.1
This year, Revenu Québec's printing norms for the Keying Summaries have changed. The vertical and horizontal lines that used to frame the fields to be entered will no longer appear when the summaries are printed.
c) Schedule A - Amount for Dependants and Amount Transferred by a Child Pursuing Studies
A new Part D has been added for tuition or examination fees transferred by a child who has designated the taxpayer as the person who can claim this amount. The child must complete Schedule T to calculate the transferable amount. You are not required to join a copy of Schedule T to your return; the student alone is required to attach Schedule T, as well as copies of the receipts related to his/her tuition or examination fees, to his/her return.
d) Schedule F - Contribution to the Health Services Fund
Following the 2008-8 information bulletin, the income replacement benefits
received by a taxpayer in accordance with the Wage Earner Protection Program
(T4A slip Box 28, code 32) are no longer subjected to the contribution to
the Health Services Fund. This amount will be added to line 20 on Schedule
F.
e) Schedule J - Tax Credit for Home-Support Services for Seniors
You could be entitled to the refundable tax credit for expenses regarding home-support services if the two following conditions are met :
- you were a resident of Quebec as of December 31, 2008;
- you were 70 years of age or over in 2008.
If you had turned 70 in 2008, only the expenses incurred from the moment you reached the age of 70 will entitle you to this tax credit.
Use the keyword Home-Support for this schedule and select the type of dwelling in which you lived during the year (Schedule J)
If you lived with a spouse as of December 31, only one of the spouses may claim the credit for the couple. DT Max will not allow the use of this keyword in both spouses' files.
The Tax Credit for Home-Support Services for Seniors has been modified and improved. These modifications read as follows:
- the tax credit has increased from 25% to 30% of the eligible expenses;
- the maximum amount for eligible expenses has increased from $15, 000 to $15, 600 per year (per eligible person);
- for a person not considered as a dependent senior, the maximum amount for eligible expenses is now $21, 600 per year (per eligible person).
In addition, the tax credit to which a person or a couple is entitled is now reduced by 3% of the portion of the annual family income that exceeds $50, 000.
If both spouses are eligible to the credit, you can use the keyword Optimize and select "TP1 - Schedule J - Home support" in order to specify which spouse is making the claim. Otherwise, the claim will be processed in the file where the entry was made.
If you have completed Schedule J and if an amount is shown in box E of the RL-19 that you have received, complete work chart 466 to verify if you are entitled to a financial compensation for home support.
Keywords for this new line :
1) Adv-Home-Protect : Protected amount for home-support services to seniors (RL-19 box E) [Que. L.466]
Use the keyword Adv-Home-Protect to enter the monthly amount used to calculate the financial compensation as indicated in box E of the Relevé 19. DT Max will report that amount on line 1 of work chart 466, if applicable.
2) Adv-Home-EndDate : End date of eligibility for the protected credit for home-support services (RL-19 box F) [Que. L.466]
Use Adv-Home-EndDate to enter the end date of eligibility for the protected credit for home-support services as indicated in box F of the Relevé 19. DT Max will use this date for the work chart 466 calculation, if applicable.
3) Adv-Home-Info : Date of moving or date where the number of the services fell and you did not notify the government [Que. L.466]
Use Adv-Home-Info to enter the date of moving or the date if fewer services were included in your rent in 2008 and you did not notify the government in 2008. DT Max will take into account only the months preceding the date on which you moved or the date one or more services were no longer included in your rent when completing work chart 466.
f) TP-1029.8.63 - Tax credit for adoption expenses and TP-1029.8.66.2 - Tax credit for the treatment of infertility
Improved tax credit for the treatment of infertility and tax credit for adoption expenses.
The rates for the refundable tax credits increases from 30% to 50%, and the maximum credit amount increases from $6, 000 to $10, 000.
g) Schedule P - Tax credits respecting the work premium
i) Part A - Work income
Calculation of the work income has been modified, by adding the net amount of research grants (line 154 code 3 paragraph j) as a work income and by eliminating the references to capital cost allowances and to work expenses and employment-related deductions.
ii) Part D - Supplement to the work premium (for former recipients of social assistance)
This part is used to calculate the supplement to the work premium intended for long-time former recipients of last-resort financial aid, who have returned to the labour market after March 31, 2008, and who, in other respects, meet the conditions to benefit from the work premium. This supplement is granted on an individual basis and for a maximum period of 12 consecutive months. The premium's amount is $200 for each month where the work income is at least $200. The number of months is entered on Relevé 5 box V. If the individual had a spouse as of December 31, and if both spouses have received a Relevé 5 on which a number of months was entered in box V, each spouse must complete their own individual Schedule P.
DT Max will generate a diagnostic if the work income seems insufficient to meet the criteria according to which the work income must be at least $200 for each month.
Keywords for this Part :
1) Schedule-P : Additional information regarding the Quebec work premium (Schedule P)
2) EligSuppl-Month : Number of months for which the working income is at least $200 per month [Schedule P, L.58]
iii) Part E Column 2
A column 2, entitled "Adapted work premium" has been added in order to calculate the new work premium for persons with severely limited capacities for employment. The individual or his/her spouse could claim the highest premium between the work premium and the adapted work premium. This new premium may be claimed if :
- the individual or his/her spouse have received allowances in 2008
under the Social Solidarity Program or an allowance for severely limited capacity for employment (Relevé 5 box Q), or
- one of them is entitled to the amount for severe and prolonged impairment in physical or mental functions in 2008, or
- the individual or his/her spouse have received, in one of the preceding five years, allowances under the Social Solidarity Program or an allowance for severely limited capacity for employment.
Use the keyword Supp-Month-Hist and select the years for which he/she has received allowances under the Social Solidarity Program.
The definition of spouse as of December 31 for the work premium has been modified for the calculation in order to take into account that the spouse as of December 31 must be a resident of Quebec at the end of the year to be recognized as such.
h) TP-350.1 - Calculation of the Deduction for Residents of Designated Remote Areas
The deduction for the residence has increased to $8.25 per day if you are entitled to the basic amount only, and to $16.50 per day if you are entitled to both the basic amount and to the additional amount for the residence.
5. Removed forms
Federal :
T2032 - Statement of Professional Activities
T2124 - Statement of Business Activities
Quebec :
Schedule O - Information Return for the Enterprise Register
This form has been replaced by a new online service in order to update information. A new line has been added on the Quebec Income Tax Return to indicate whether the information contained in the register should be modified or not. Should the information found on the Information Statement be inaccurate, the individual can use the new online service to update the information. This service is free, quick and easy to use and can be accessed via this link :
www.registreentreprises.gouv.qc.ca.
A new paragraph has been added to the client letter to notify the individual about this online service and to recommend that he uses this service to make the appropriate changes on the enterprise register, if you mention with the keyword Info-Exact.o that the information contained in the enterprise register has changed.
TP-1029.MD.1 - Registration for advance payments - Tax credit for home-support services for seniors
TP-1029.MD.2 - Application for advance payments - Tax credit for home-support services for seniors
6. Form in preliminary version
Please note that there are no more forms in preliminary version with version 12.10.
7. New in-house forms
a) 5-year comparative summaries for statements of business activities (reminder)
As mentioned in our June 2008 issue of What's New?, the following five new summaries have been previously added in our planner version 11.30 for tax year 2008:
T776-S - Real estate rental summary
T2125-S - Professional activities summary
T2125-S - Business activities summary
TP-80-S - Business or profession activities summary and
TP-128-S - Rental of immovable property summary.
The summaries have been designed to allow users to easily view the variations of income and expenses. The summaries are made up of four information sections, an identification section, a section for income and expenses, a section for the variation percentage for each year and finally a section for the percentage represented by the income and expenses types for the current year in relation to the gross income. Should the income tax returns be queued for printing, prior data will be automatically retrieved by DT Max.
b) New summaries
DT Max always makes a point of listening to the needs and requests of its clients and in order to assist you in verifying the results, DT Max has added for tax year 2008 the following three new summaries:
Tax return summary
This summary contains the individual taxpayer's data only.
Tax return summary - combined
This summary contains the individual's data, his spouse's, as well as the total for the family.
T1 and TP-1 returns summary
This summary contains the individual's data with the corresponding line for the provincial income tax. By way of comparison, the lines that are processed differently will be displayed in pale grey.
These new summaries will only show the lines for which an amount is entered and cover most of the tax return's lines.
c) Optimization report
The Optimization Report is a new diagnostic schedule that lists all the
optimizations DT Max has performed automatically in a particular file. Not
only the report provides a list with these optimizations, it also shows you
the steps to take to disable them.
d) Error prevention report
The error prevention report is a new diagnostic schedule that provides a
list of potential data entry errors detected, and possible omissions within
a particular file. This report is more detailed than our current Notes and
Diagnostics schedule (which remains unchanged for 2008); it narrows down the
potential errors to specific lines on the income tax return. Not only this
report does list these potential errors, it also shows you the steps to take
to correct them.
8. New keywords
1) New keyword in the Business group, instead of pressing [Alt-J] on the keyboard to enter the Quebec tax shelter identification number :
QueTaxShelter : Quebec tax shelter identification number
(QAF NN NNNNN)
2) New keywords in the Business group, for cases when you have home office expenses and you have used the keyword Spouse-Partner% , percentage share of spouse in business, with the option "Spouse share - generate business statement with same data" :
With the two new keywords below, you now have the ability to specify the percentage that is used for personal purposes by the spouse if this percentage differs from the one entered with the keywords Home-Own-Use , portion of the home used for personal purposes, and Home-HeatUse , percentage of heat and light expenses incurred respecting the personal-use portion. They are :
a) Sp-Home-Own-Use : Portion of the home used for personal purposes by the spouse
b) Sp-Home-HeatUse : Percentage of heat and light expenses incurred respecting the portion of the home used for personal purposes by the spouse
3) ) New keywords in the QStratInvCFH group for option "SME Growth Stock Plan" :
a) DEDUCT-3.QSC : Amount of SME Growth Stock Plan deducted from three years ago (Que. Sch.D L.56 2005)
This is the Quebec SME Growth Stock Plan deduction from 3 years ago and reported on line 56 of schedule D.
b) RECOVERY-LY-2 : Recovery of previous year's SME Growth Stock Plan deduction (Que. TP-965.55 L.37 2006)
c) ) COV-DEFICIENCY-3 : Coverage deficiency amount from three years ago (Que. Sch.D L.52 2007)
4) i. New keywords in the Authorize group for authorization form T1013 :
a) GroupID.repc : Representative (group) identification number for authorization purposes (GAAAAA) [T1013 PART 4]
b) NameGroup.repc : Name of group [T1013 Part 4]
ii. New keywords in the Authorize group for authorization form MR-69 :
c) Indicate-NEQ : Indicate the Quebec enterprise number (NEQ) in the Identification section 1.1
d) Indicate-IdenNo : Enter the Identification number to indicate in the Identification section 1.1
5) New keywords in the T-Slip group for option RL-5:
a) Notebook-Reclam : Notebook reclamation (yes/no) (RL-5 box S)
b) Start-Period : Start period (RL-5 box T)
c) Return-FinAssis : Months of return to the financial assistance (RL-5 box U)
d) Number-Month : Number of months [Schedule P, L.57] (RL-5 box V)
6) Additions to keyword ITC for the form T2038(IND.) :
For option "Amount on which ITC is recaptured at 25%"
If, at any moment within 60 months of creating a new child care space, that space is no longer available or if the property for which an eligible expense has been incurred for a child care space is being rented or is converted to another use, the ITC will be recovered for that space or property.
a) ITC-Claimed : Amount originally claimed
b) Proceeds-or-FMV : Proceeds of disposition of the eligible property of FMV if disposed of to a non-arm's length party
Use the keyword Proceeds-or-FMV to enter the proceeds of disposition of the eligible property or the fair market value if disposed of to a non-arm's length party. DT Max will calculate 25% of this amount and enter it on line 5 of form T2038.
7) New keywords in the RelatedParty group, information about a person related to the taxpayer :
a) RDSP.r : Registered disability savings plan income in his or her net income [Fed. L.125]
b) RDSP-REPAID.R : Registered disability savings plan income repayment [included in Fed. L.232]
8) New keyword in the Bankruptcy group for the option "Pre-bankruptcy return", type of bankruptcy return :
PostBank-NI : Post-bankrupty net income (Fed. L.236) Efile information only
9) New group for form T1005 - Manitoba tuition fee income tax rebate :
a) TUITION-TAX : Year for which you are making a claim for the Manitoba tuition fee rebate [T1005]
The T1005 is used to calculate the Manitoba tuition fee income tax rebate. You can claim this rebate if you were a resident of Manitoba at the end of the year and you graduated after 2007.
You must make your initial claim no later than 10 years from the year that you graduated. The rebate you earn is used to reduce your Manitoba tax payable. Any unused amount can be carried forward for up to 20 years after the initial claim.
b) YEAR-GRADUATE : Year of graduation [T1005, L. 6084]
c) TUITION-TAX-CR : Tuition fees for which you were entitled to claim the federal tuition amount after 2003 [T1005]
Use the keyword TUITION-TAX-CR to enter the eligible tuition fees for which you were entitled to claim the federal tuition amount after 2003 and up to the graduated date. The Manitoba tuition fee income tax rebate can be claimed if you were a resident of Manitoba at the end of the year and you graduated after 2006. Choose "Graduated from an institution outside Manitoba" if the box 6088 should be ticked. You must make your initial claim no later than 10 years from the year that you graduated. The rebate you earned is used to reduce your Manitoba tax payable. Any unused amount can be carried forward for up to 20 years after your initial claim.
d) TUITION-TAX-CF : Year of initial claim and remaining claimable tuition [T1005]
Any unused amount can be carried forward for up to 20 years after your initial claim.
e) TUITREB-CLAIMED : Year and tuition fee income tax rebate claimed (2007 Form T1005, L.8)
f) TUITION-TAX-HIST : Year and amount of eligible tuition fees from
line 1 of the 2007 Form T1005
10) New keyword in the ProvCredit group for Saskatchewan, jurisdiction and type of provincial tax credit :
GRADUATE-CR-CF : Unused graduate tax exemption amount (Line 5879, SK428)
Use the keyword GRADUATECR-CF to enter the Saskatchewan unused graduate tax exemption amount. The unused amount is shown on the Notice of Assessment or Notice of Reassessment.
9. New options
1) New options added to keyword Footnotes.t for RL-5 :
a) Note - Box 60 - Québec renewable and conservation expenses
Enter the amount indicated in the centre of RL-15 as (Box 60 - Québec renewable and conservation expenses). This amount will not be included in the calculation of line 14 of Schedule N.
b) Note - Box 61 - Québec development expense
Enter the amount indicated in the centre of RL-15 as (Box 61 - Québec development expenses). This amount will not be included in calculation of line 14 of Schedule N.
2) New options added to keyword FOOTNOTES.RL11 for RL-11 :
a) Note - Box A - Québec renewable and conservation expenses
Enter the amount indicated in the centre of RL-11 as (Box A - Québec renewable and conservation expenses). This amount will not be included in calculation of line 14 of Schedule N.
b) Note - Box B - Québec development expenses
Enter the amount indicated in the centre of RL-11 as (Box B - Québec development expenses). This amount will not be included in calculation of line 14 of Schedule N.
3) New options added to the Cap-Reserves group, type of gain reserves available this year [T2017]
a) Farm (QFP) & fishing after March 18, 2007
b) Fishing (QFiP) after March 18, 2007
c) Small business corporation (QSBCS) after March, 2007
4) New option added to keyword Expenses from the Business group, amounts and types of business expenses :
Meals expenses (truck drivers in 2008)
Meal and beverage expenses of long-haul truck drivers are deductible at a higher rate than the 50% permitted for other transportation employees. During eligible travel periods in 2008, meal and beverage expenses incurred by long-haul truck drivers are deductible at 65%. This rate will increase by 5% each year until the maximum rate of 80% is reached in 2011.
5) New capital cost allowance (CCA) class added :
Class 51 - 6% (after March 18, 2007)
A new capital cost allowance (CCA) class (Class 51 - 6% (after March 18, 2007)) has been added for property that is a natural gas distribution line acquired on or after March 19, 2007 (other than property used before that date). Such property includes control and monitoring devices, valves and other equipment ancillary to a natural gas distribution pipeline. This treatment does not apply to the following properties:
a) a pipeline described in subparagraph (l)(ii) of Class 1, or in Class 49;
b) property that has been used or acquired for use for any purpose by a taxpayer before March 19, 2007; and
c) a building or other structure.
6) New option added to keyword RepaidAmount , amounts and types of repayments (RRSP, social benefit, etc.) :
Registered disability savings plan (RDSP)
This amount will be deducted on line 232 of the federal return and on line 250 code 14 of the Quebec return.
7) New options added to keyword Type.cg , type of capital property for the option "Bonds, debentures, promissory notes" from the CAPITAL GAIN group :
a) Stripped bonds
Stripped Coupons are interest payment coupons detached from government bonds. Residuals are the bonds without their interest coupons. Both are sold as individual investments known as "Strips". Strips are always sold at a discount and mature at face value. The longer the term to maturity, the deeper the discount. The difference between the purchase price and the face value is your interest income.
If the date of disposition [ Date-Disposition ] is the same as the maturity date [Date-Maturity.c ], the amount will be reported as interest, otherwise it will be processed as a capital gain.
b) Treasury bills
Treasury bills (T-bills) are very safe investments issued by the federal government and some provinces. These investments are sold at a lower price than their price at maturity. The difference between the purchase price and the selling price represents your return. Although the return on this category of investment is a capital gain, it is considered to be interest income for tax purposes and is therefore taxable at 100%.
If the date of disposition [ Date-Disposition ] is the same as the maturity date [Date-Maturity.c ], the amount will be reported as interest, otherwise it will be processed as a capital gain.
c) Foreign exchange
Foreign exchange gains or losses from capital transactions in foreign currencies are considered to be capital gains or losses. However, DT Max will only report the amount of your net gain or loss for the year that is more than $200. If the net amount is $200 or less, DT Max will report no capital gain or loss; and you will not be required to report it on your return.
8) Overrides have been added for form RC71 - Statement of discounting transaction.
9) New options added to keyword AMOUNT.PRE , amounts from pre-bankruptcy return :
a) QPIP insurable earnings
b) ) QPIP premiums paid
10) New options added to keyword Optimize :
a) T1 - Public transit
b) TP1 - Schedule J - Home support
c) SK - Unclaimed graduate tax exemption
11) New option added to keyword Transfer-OV :
T1 - Public transit
12) New option added to keyword Designation.res , taxation years period that property was designated as principal residence [T2091(IND)] [TP-274] :
Designate zero year as a principal residence
13) New options added to keyword Account.rep for form MR-69, accounts to which access is authorized/unauthorized :
a) Advance payments for home-support services for seniors
b) Shelter allowance
10. New client letter variables
%136 T1297 - NL resort property tax credits [$]
%257 Q438 - Annual registration fee for the Quebec enterprise register [$]
%258 Q436 - Information about the business changed [0=No, 1=Yes]
%259 Split-pension combined federal savings
%260 Split-pension combined Quebec savings
%261 Q458 Schedule J - Senior residence [$]
%239 T1005 - Manitoba tuition fee income tax rebate [$]
%240 T1256-1 - Manitoba community enterprise investment tax credit [$]
%241 TPZ-1029.MD.7 - Advance payments for seniors (rent) [0=No, 1=Yes]
%242 TPZ-1029.MD.8 - Advance payments for seniors (condo) [0=No, 1=Yes]
%243 TPZ-1029.MD.9 - Advance payments for seniors (other) [0=No, 1=Yes]
11. Notes and reminders
a) Efile
i) Reminder
Before transmitting any returns please verify that you have registered / renewed your Federal, and if applicable, Quebec Efile Number. You should also verify that the Efile Number and Password is properly reflected within your Efile Setup and that the options selected within the Efile Defaults reflect your desired preferences.
If you submit Quebec returns via Efile and generate form TP-1000, the Quebec Ministry of Revenue will require a signature on Part 3 of the form even if you have already obtained one for the MR-69 form.
ii) Pre-bankruptcy return
Please note that you must paper file CRA's Form DC905 prior to submitting a pre-bankrupt return to the federal government via Efile.
b) Dr Tax dial-up service
Please note that the Efile transmission method "Dr Tax dial-up service" is no longer supported.
c) Message from the CRA
Below is information that CRA asked that we forward to our users.
1. Encourage the user to use white paper when printing tax returns.
2. Advise the user to avoid using punctuation such as period or commas in
the street address line.
3. Advise the user not to use the pre-printed address label provided by
the CRA if the user's address has changed.
4. Advise the user that the bar code contains the tax data present in the
software at the time the print request is made
5. Advise the user that where changes are made to a return subsequent to
the printing of the bar code, a new page 1 of the return must always be
printed when printing the return again.
d) Messages from Revenu Québec
i) Erroneous birth dates
Some tax preparers regularly use a "fake" date of birth such as 01-01 (MM-DD). The use of such "fake" dates of birth has some major harmful effects regarding the processing of tax returns by Revenu Quebec and we wish to make as many tax preparers as possible aware of the importance of providing accurate information when filing tax returns.
The impacts of entering an incorrect date of birth:
An incorrect date of birth prevents the taxpayer from accessing Revenu Quebec's electronic services such as:
- The Refund Info-line
- The Access Code Info-line
- Requesting an access
code, and
- Changing your address.
Moreover, it delays the processing of your tax return and can cause errors in the following sections:
1. Calculation of QPP contributions
2. Eligibility to QST credit
3. Calculation of the premium payable under the Quebec Prescription Drug Insurance Plan
4. Old-age pension
5. Determining the age amount
The impacts of entering an incorrect date of status change
The absence of a date of status change is the most frequent error on NETFILE. It is generated when the present status found in Revenu Quebec's files differs from the one entered on the tax return and that no date of status change has been entered in field 13 of the return. More than 20% of the dates of status change entered on the return by taxpayers and preparers correspond to 01-01.
The date of status change is used notably by the Régie des rentes du Québec. An incorrect date of status change can alter the results when determining the Child Assistance Payment. In addition, at the Ministère de l'Éducation, Loisirs et Sports, an incorrect date of status change can create errors in the assessment of student loans and bursaries.
ii) Deceased persons and bankruptcy returns for 2008
Starting February 3rd, the tax returns for deceased persons as well as bankruptcy returns for tax year 2008 that are filed with the 2007 version of DT Max will no longer be accepted by Revenu Québec. Returns that are received from this day onward will be sent back along with a notification advising that the returns be filed with version 12.01 and subsequent.
e) Demo database
Please note that the demo database "DemoClients" should be used for demonstration and learning purposes only. Please create a new database for your actual client tax returns. This is especially important under Microsoft Vista.
f) Carryforwards
As always, we recommend that you verify your carryforwards carefully before
processing your client files.
12. Program certification
DT Max is certified for paper filing under the following authorization numbers:
Federal: RC-08-119
Quebec: RQ08-TP32
13. DT Max references
Please refer to these knowledge base topics for a detailed review of tax changes implemented:
DT Max T1
Non refundable tax credits (2008)
Tax brackets and rates (2008)
Tax changes in DT Max (2008)
DT Max T3
Program certification
DT Max is certified for paper filing under the following authorization numbers:
Federal schedules: CRA-08-501
Quebec schedules: RQFS-0801
Federal slips: RC-08-119
Quebec slips: FS-07-16-001
2009 tax rates for T3
All federal and provincial tax rates have been updated in DT Max T3 for 2009.
The rates are based on information available as at December 31, 2008. Please
refer to the DT Max Knowledge Base for additional details on the new
tax rates.
New forms
Federal:
T2125 - Statement of business or professional activities
New in-house forms: 5-year comparative summaries for
statements of business activities
As mentionned in our June 2008 issue of What's New?, the following four
new summaries have been previously added in our planner version 11.30 for
tax year 2008:
T776-S - Real estate rental summary (federal)
T2125-S - Business or profession activities summary (federal)
TP-80-S - Business or profession activities summary (Quebec), and
TP-128-S - Rental of immovable property summary (Quebec).
The summaries have been designed to allow users to easily view the variations
of income and expenses. The summaries are made up of four information sections,
an identification section, a section for income and expenses, a section for
the variation percentage for each year and finally a section for the percentage
represented by the income and expenses types for the current year in relation
to the gross income. Should the income tax returns be queued for printing,
prior data will be automatically retrieved by DT Max.
Modified forms
Federal:
T3 - Trust income tax and information return
Schedule 1 - Dispositions of capital property
Schedule 1A - Capital gains on gifts of certain capital property
Schedule 2 - Reserves on dispositions of capital property
Schedule 3 - Eligible taxable capital gains
Schedule 4 - Cumulative net investment loss
Schedule 9 - Income allocations and designations to beneficiaries
Schedule 11 - Federal income tax
Schedule 12 - Minimum tax
Schedule 12A - Chart 2- Ontario minimum tax carryover for 2008 (trusts)
Note: The CRA has not issued new versions of Schedule 6, 7, 8 or 10 for
the 2008 tax year.
T3 Provincial forms
T3 slip and summary
NR4 slip and summary
TX19 - Asking for a clearance certificate
T3M - Environmental trust income tax return
T184 - Capital gain refund to a mutual fund trust
T3P - Employee's pension plan income tax refund
T776 - Statement of real estate rentals
T1013 - Authorizing or cancelling a representative
T1163 - Statement A: AgriStability and AgriInvest programs information and
statement of farming activities for individuals
T1172 - Additional tax on accumulated income payments from RESPs
T1175 - 2009 Farming - Calculation of CCA and business-use-of-home expenses
T1273 - Statement A: Harmonized AgriStability and AgriInvest programs information
and statement of farming activities for individuals
T2036 - Provincial or territorial foreign tax credit
T2038 - Investment tax credit
T2042 - Statement of farming activities
T2121 - Statement of fishing activities
T2209 - Federal foreign tax credits
Quebec:
TP-646 Trust income tax return
Schedule A - Taxable capital gains and designated net taxable capital gains
Schedule B - Investment income, gross-up of dividends not designated and
adjustment of investment expenses.
Schedule C - Summary of allocations and designations
Schedule D - Carry-back of a loss
Schedule E - Income tax in allocated non-portfolio earnings and amount to
be designated as eligible dividends
MR-69 - Power of attorney, Authorization to communicate information, or
Revocation
TP-776.47 - Alternative minimum tax of a trust
TP-80.1 - Calculation of business income, adjusted to Dec. 31
Forms under review
Schedule 5 - Spousal or common-law partner trust's capital gains deduction
in year of beneficiary's death
T3A - Request for loss carryback by a trust
T3MJ - T3 provincial and territorial taxes for 2008 - Multiple jurisdictions
T1135- Foreign income verification statement
T1141 - Information return in respect of transfers or loans to a non-resident
trust
T1142 - Information return in respect of distributions from and indebtedness
to a non-resident trust
T2223 - Election, under subsection 159(6.1) of the Income Tax Act, by a
trust to defer payment of income tax
Forms removed
Federal:
T3NT-1 - Northwest Territories risk capital investment tax credit calculation
T2124 - Statement of business activities
Quebec:
TP-231 - Capital gain resulting from the donation of certain property
Warning: verifying carryforwards
As always, we recommend that you verify your carryforwards carefully before
processing your client files.
New keywords
For MR-14.A:
DistributedProp : Value of any property already distributed
Use the keyword DistributedProp to enter the value of any property
already distributed.
This information will be reported on Quebec schedule MR-14.A, line 42,
to determine the value of the property to be distributed.
For T2038:
1) ITC-Claimed : Amount originally claimed for child care spaces
Use the keyword ITC-Claimed to recapture the ITC claimed for child
care spaces. If, at any time within 60 months of creating a new child care
space, that space is no longer available or is converted to another use,
the ITC will be recovered for that space or property.
2) Proceeds-or-FMV : Proceeds of disposition or FMV of eligible property
Use the keyword Proceeds-or-FMV to enter the proceeds of disposition
of the eligible property or the fair market value if disposed of to a non-arm's
length party. DT Max will calculate 25% of this amount and enter it on line
5 of form T2038.
For T1013:
1) Group-Name.rep : Group name
2) GroupID : Representative's group identification number
Use the keyword GroupID to enter the 6-character alphanumeric code,
starting with the letter G, that identifies a group of representatives.
If the representative does not have an identification number, they can
register for one online at www.canada.ca/en/revenue-agency.html.
New options
For keyword ITC-Claimed :
1) Recapture ITC for child care spaces
2) Recapture ITC for property other than child care spaces
February 3, 2009
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