  What's new for T1/T3 version 12.30? |
DT Max version 12.30 is a CD release that features the T1/TP-1 program for tax years 1999 to 2008 as well as the 2009 tax planner, in addition to fully supporting T1/TP-1 efile. Version 12.30 also features the T3/TP-646 program for fiscal periods ending from 2003 to 2009 inclusively.
Please note that all program versions are first made available on the Internet.
In this version...
DT Max T1
DT Max T3
DT Max T1
Version highlights
Known issue fixed in version 12.30
Implementation of announced tax changes
The Budget speeches :
Federal (January 24, 2009)
Newfoundland and Labrador (March 26, 2009)
Prince Edward Island (April 16, 2009)
Nova Scotia (May 4, 2009)
New Brunswick (March 17, 2009)
Quebec (March 19, 2009)
Ontario (March 26, 2009)
Manitoba (March 25, 2009)
Saskatchewan (March 18, 2009)
Alberta (April 7, 2009)
British Columbia (February17, 2009)
Northwest Territories (February 5, 2009)
Nunavut (still to come)
Yukon (March 19, 2009)
Please refer to these knowledge base topics for a detailed review of tax
changes implemented :
The tax changes knowledge base topic above discusses, among other things,
the changes in the following excerpt. Please click on the above link for full
details :
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Excerpt of 2009 tax changes
Federal
-
The new tax rates and income brackets as shown on Schedule 1 are as follows:
| Tax Brackets
| Rates
|
| $0
| $40,726
| 15%
|
| $40,726
| $81,452
| 22%
|
| $81,452
| $126,264
| 26%
|
| more than $126,264
| 29%
|
-
The personal basic amount is increased to $10,320.
-
The age amount is increased to $6,408.
-
The spousal amount and the amount for an eligible dependant are increased to $10,320.
-
The maximum amount for an infirm dependant age 18 or older is increased to $4,198 per dependant.
-
The maximum eligible earnings for CPP/QPP purposes is $46,300. The rate respecting CPP/QPP contributions is 4.95%.
-
The maximum amount of eligible earnings for employment insurance purposes is $42,300. The employment
remains unchanged at 1.73%.
-
The maximum amount of eligible adoption expenses is increased to $10,909.
-
The pension income amount remains unchanged at $2,000.
-
The maximum amount eligible for the calculation of the caregiver amount is $4,198 per dependant.
-
The disability amount is increased to $7,021, and may be increased by a maximum supplement of $4,198 (workchart 316).
-
The maximum amount (3% of net income) deducted to calculate allowable medical expenses is increased to $2,011.
-
The maximum amount for the Canada employment non-refundable tax credit is increased to $1,044.
-
The non-refundable tax credit for children under 18 is increased to $2,089.
-
The maximum amount tax credit for sport and recreation per child remains unchanged at $500.
-
The education amount for part-time studies and the textbook amount remain unchanged at $120 and $20 per month.
-
The education amount for full-time studies and the textbook amount remain unchanged at $400 and $65 per month.
-
The maximum amount for the refundable medical expenses supplement (line 452) has been increased to $1,067.
-
Eligible dividends are taxable at 145% with a federal dividend tax credit of 18.9655%. Dividends other than
eligible dividends are taxable at 125% with a federal dividend tax credit of 13.3333%.
Ontario
-
The tax rates are unchanged but apply to new income brackets and the new surtax as follows:
| Tax Brackets
| Rates
| Surtax rates
| Thresholds
|
| $0
| $36,848
| 6.05%
| 20%
36%
| $4,257
$5,370
|
| $36,848
| $73,698
| 9.15%
|
| more than $73,698
| 11.16%
|
-
The personal basic amount is increased to $8,881.
-
The age amount is increased to $4,336.
-
The spousal amount, the amount for an eligible dependant and the amount for an infirm dependant (age 18 or older)
are increased to $7,541.
-
The maximum amount for retirement income is increased to $1,228.
-
The caregiver amount is increased to $4,186.
-
The disability amount is increased to $7,175.
-
The disability supplement is increased to $4,186.
-
The maximum amount that can be deducted from medical expenses is increased to $2,010.
-
The maximum Ontario Health Premium remains unchanged at $900.
-
The maximum amount of eligible expenses related to the adoption of a child under 18 years of age has been increased to $10,834 per child.
-
The maximum amount of allowable medical expenses for other dependants has been increased to $10,834.
-
The dividend tax credit for eligible dividends is increased to 7.4%. The dividend
tax credit for dividends other than eligible dividends remains unchanged at 5.13%.
-
The income level used by senior couples to calculate Ontario Property and Sales Tax Credits remains unchanged at $24,300.
Quebec
-
The tax rates are unchanged but apply to new income brackets as follows:
| Tax Brackets
| Rates
|
| $0
| $38,385
| 16%
|
| $38,385
| $76,770
| 20%
|
| more than $76,770
| 24%
|
-
The basic amount is increased to $10,455.
-
The amount for persons living alone is increased to $1,225.
-
The amount for a single-parent family is increased to $1,520.
-
The age amount is increased to $2,250.
-
The maximum amount of eligible retirement income is increased to $2,000.
-
The amount for dependent child is increased to $2,805.
-
The amount for post-secondary studies is increased to $3,860.
-
The maximum amount of employment insurance premiums is $583.74.
-
The maximum amount of Quebec parental insurance plan premiums is $300.08.
-
The medical expenses tax credit has been increased to $1,056.
-
The maximum contribution to the Quebec prescription drug insurance plan (Schedule K) for 2009 is increased to $570.00.
-
The income threshold used in the calculation of the tax credit respecting the work premium (Schedule P) remains unchanged at
$15,044 for an individual with a spouse and $9,796 for an individual without a spouse.
-
The deduction for workers is increased to $1,025.
-
Dividends other than eligible dividends received, will be taxable at 125% with a Quebec dividend tax credit of 8%.
Eligible dividends received after March 23, 2006, will be taxable at 145% with a Quebec dividend tax credit of 11.9%.
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Bankruptcy module
As part of our unyielding commitment to always meet our clients' expectations
and in order to make your work even easier, DT Max is proudly introducing
some significant improvements to its bankruptcy module.
First, the carryforwards of pre-bankruptcy data have been redefined, so that
DT Max is now using two keywords, PreBank-Fed and PreBank-Que , to carry
forward all the required information when calculating the post-bankruptcy
return. These improvements have allowed us to develop a new and very innovative
bankruptcy summary, that will be generated in the post-bankruptcy return.
This new summary contains all the relevant information, including the date
of bankruptcy, the number of days in pre-bankruptcy and post-bankruptcy, the
number of days in the calendar year, all the lines of the tax return that
feature pre-bankruptcy and/or post-bankruptcy amounts as well as the pre-bankruptcy
and post-bankruptcy total amount. This summary will provide you with a complete
overview of the tax situation in the year of the bankruptcy, and will allow
you to view and validate the allocation of income, deductions and credits
in the pre-bankruptcy and post-bankruptcy returns.
Secondly, DT Max has developed a new chart outlining the processing rules
for bankruptcy returns. This chart is included in the knowledge base and may
be accessed by using Crtl + F8 on the keyword Bankruptcy. It will provide
you with an overview of how each line of the return is to be specifically
processed for the federal, provincial and Quebec tax returns.
Thirdly, DT Max now allows you to process two bankrupt spouses within the
same family during the same tax year. In a situation where the spouse is also
bankrupt, you can now use the keyword Bankruptcy in both spouses' tax files.
Fourthly, we have modified all of our client letters in order to include
paragraphs that will specify whether pre-bankruptcy and post-bankruptcy returns
are involved.
In conclusion, following all of these improvements, you will be required
to recalculate all of your 2009 pre-bankruptcy returns that were calculated
with a previous version.
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New client letter variable
%244 Bankruptcy
Values :
1 = Pre-bankruptcy
2 = Post-bankruptcy
3 = Trustee
6 = Pre-proposition
7 = Post-proposition
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Notes and reminder
Deceased or bankrupt taxpayers
Although the tax planner might not be appropriate to prepare 2009 income
tax returns for living taxpayers, it may be used legally to prepare returns
on behalf of deceased or bankrupt taxpayers. Following the calculations, tax
plans will appear with our preliminary updates of tax forms for the new tax
year, however the returns of deceased or bankrupt taxpayers will be displayed
on approved forms from the prior tax year, in conformity with the government's
instructions. For more details, please consult the following documents from
the Knowledge base: " Preparing the return of a deceased taxpayer "
and " Preparing a bankruptcy return ".
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Printing prescribed forms for 2009 returns
Year after year, there is a certain level of confusion among tax preparers
in regard to the forms versions. Administrative policies differ from one level
of government to the other as for the validity of the prescribed forms.
Quebec
When a 2009 tax return is produced before the official annual forms are made
available, depending on whether the Quebec form is prescribed or not, the
year that is printed may be 2008 or 2009. Even though the system's calculation
engine is calibrated for tax year 2009, only a complete paper certification
process (performed in the fall) allows the preparers to use the 2009 prescribed
forms.
In addition, the authorization number (RQ08-TP36) displayed on all prescribed
forms, is not and should not be printed on these types of returns.
Federal
On all federal forms, the year is changed to 2009.
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Reminder
You have to update the relevant historical information found in the Cap-History
keyword further to the carry back of capital losses in your client's file.
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DT Max T3
New forms
Federal :
- T3-RCA - Part XI.3 Tax Return - Retirement Compensation Arrangement (RCA)
DT Max in-house schedules :
- Preferred Beneficiary Election
- Preferred Beneficiary Statement
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Modified forms
Federal :
The following provincial tax forms have been modified in order to reflect
the budget changes :
- T3BC - British Columbia Tax
- T3MB - Manitoba Tax
- T3NB - New Brunswick Tax
- T3NL - Newfoundland and Labrador Tax
- T3NT - Northwest Territories Tax
- T3NU - Nunavut Tax
- T3ON - Ontario Tax
- T3SK - Saskatchewan Income Tax
- T3SK(CG) - Saskatchewan Farm and Small Business Capital Gains Tax Credit
(Trusts)
- T3YT - Yukon Tax
Quebec :
- TP-646 - Trust Income Tax Return
- MR-14.A - Notice Before Distribution of the Property of an Estate
- TP-1129.53 - Income Tax Return for Environmental Trusts
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Forms under review
Federal :
- T3A - Request for Loss Carryback by a Trust
- 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
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Warning : verifying carryforwards
As always, we recommend that you verify your carryforwards carefully before processing your client files.
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New keywords
In the Beneficiary :
a) Sign-Date.ben : Date on which the beneficiary has signed
Use the keyword Sign-Date.ben to enter the date on which the beneficiary
has signed the document.
b) Legal-Guardian : Name of legal guardian of preferred beneficiary
Use the keyword Legal-Guardian to enter the name of the legal guardian.
In many cases, the preferred beneficiary under the trust may not have the
capacity to sign the statements required. In such cases, the Minister will
accept an election that is signed on behalf of the beneficiary by the legal
guardian of the beneficiary's property.
c) Relationship : Relationship of beneficiary to the settlor
Use the keyword Relationship to enter the relationship of the preferred
beneficiary to the settlor of the trust.
d) Disability-Cr : Individual claiming disability credit
Use the keyword Disability-Cr to indicate who is claiming the disability
credit for the preferred beneficiary.
e) Support-Name : Name of supporting individual
Use the keyword Support-Name to enter the name of supporting individual
who is claiming the disability tax credit on behalf of the preferred beneficiary.
f) Support-Address : Address of supporting individual
g) Support-SIN : Social insurance number of supporting individual
In the T3-RCA group :
a) T3-RCA : Step-by-step information required for RCA tax return
Use the keyword T3-RCA to enter the information required in each step
of the ''Retirement Compensation Arrangement (RCA) Part XI.3 Tax Return''.
Each step should be completed in order.
b) Documentation : Supporting documentation
Use the keyword Documentation to change the automatic choice from "No"
to "Yes" for the appropriate questions in Step 1 of the T3-RCA
form. If there is no information entered with this keyword, DT Max will
automatically choose "No" as the default.
c) Name.rca : Name of person who disposed or bought an interest
Use the keyword Name.rca to enter the information for question 2 in
Step 1 of the T3-RCA form.
d) Address.rca : Address of person who disposed or bought an interest
e) SIN-BN.rca : Social insurance number or business number
Use the keyword SIN-BN.rca to enter the social insurance number or
business number of the person who disposed or bought an interest in the
RCA.
f) BusinessNo.rca : Business number
Use the keyword BusinessNo.rca if amounts are returned to an employer,
or distributed as benefits during the year.
g) NR-Remittance : Non-resident remittance account number
Use the keyword NR-Remittance, if applicable, when amounts are returned
to an employer, or distributed as benefits during the year.
h) No-Members.rca : Number of members of the RCA
Use the keyword No-Members.rca to indicate the number of members of
the RCA for whom the RCA trust received contributions.
i) Contributions.rca : Details of contributions received during the
year
Use the keyword Contributions.rca to enter the details of each contribution
received during the year. DT Max will enter this information in the appropriate
section in Step 2 of the form.
j) Details.rca : Details for contributions received from an employer
Use the keyword Details.rca to enter the details of each contribution
received from an employer during the year.
k) Contributor-Name : Name of member who made the contribution
Use the keyword Contributor-Name to enter the name of the RCA member
who contributed to the plan during the year.
l) Date.rca : Date the contributions were received
Use the keyword Date.rca to enter the date the contributions were received.
m) Amount.rca : Amount received
Use the keyword Amount.rca to enter each contribution received during
the year.
n) Cash.rca : Cash property of the RCA trust
Use the keyword Cash.rca to enter the cash amount in the RCA trust at
the end of the tax year.
o) RCA-Property : Debt obligations of the RCA trust
Use the keyword RCA-Property to indicate whether there is any debt obligations
belonging to the RCA trust.
p) Principal-Amount : Principal amount of the debt obligation
Use the keyword Principal-Amount to enter the principal amount of the
debt obligation.
q) Debt-FMV : Fair market value of debt obligations
Use the keyword Debt-FMV to enter the fair market values of the debt
obligation.
r) Shares-FMV.rca : Fair market value of shares
Use the keyword Shares-FMV.rca to enter the fair market value of shares
listed on a prescribed stock exchange.
s) RTOTC-CF : Refundable tax on total contributions - beginning of year
Use the keyword RTOTC-CF to enter the refundable tax on total contributions
at the beginning of the year. This amount comes from line 06 of Step 3 on
page 4 of the prior year's tax return.
t) Income.rca : Trust's income and capital gains
Use the keyword Income.rca to enter the trust's income and capital gains.
u) Distribution.rca : Distributions, returned or transferred amounts
from RCA
Use the keyword Distribution.rca to enter any distributions, returned
amounts to the employer, or transferred amounts to another RCA.
v) Options.rca : Choose applicable option A, B or C
Use the keyword Options.rca to choose the option that applies concerning
the refundable tax on hand, after distributions, at the end of the tax year.
w) Amount-RTOH : Amount of refundable tax on hand to be distributed
Use the keyword Amount-RTOH to enter the amount of refundable tax on
hand that will be distributed when received.
x) Deduct-RTOH : Amount of refundable tax on hand
Use the keyword Deduct-RTOH to enter the amount of refundable tax on
hand used in Step 5 to calculate the Part XI.3 tax payable or refundable.
In the group Trust :
Trust-Info.rca : Required information
Use the keyword Trust-Info.rca to enter required information for the
trust return.
In the group Trustee :
Custodian-Acct : Custodian account number
Use the keyword Custodian-Acct to enter the custodian account number
which is used to monitor the balance of the refundable tax on hand for the
RCA trust.
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New options
1) Options added to new keyword Documentation , in the group T3-RCA
:
First tax year or amended terms of arrangement
Person disposed of an interest
Person bought an interest
Amounts returned to employer or contributor
No. of members for whom trust rec'd contributions
etc.
2) Options added to new keyword T3-RCA :
Step 1 - Supporting documentation
Step 2 - Details of contributions
Step 3 - Calculating the refundable tax
Step 4 - Election under subsection 207.5(2)
Step 5 - Part XI.3 tax
3) Options added to new keyword Contributions.rca , in group T3-RCA
:
Amounts received from employer
Amounts received directly from an RCA member
Amounts transferred directly from another RCA trust
Part 1 - Amounts received from employer
Details for each contribution received from the employer during the year
must be entered. Copy 2 of the T737-RCA should be attached to support
these amounts.
If the custodian of this RCA trust is a non-resident, or if this arrangement
is a foreign plan considered under subsection 207.6(5) to be an RCA for
Canadian residents participating in the plan, details must be provided for
any lump-sum amounts that have been transferred from another RCA trust to
this RCA trust.
Part 2 - Amounts received directly from an RCA member
Details of all amounts received directly from an RCA member must be entered
separately.
Part 3 - Amounts transferred directly from another RCA trust
If funds have been transferred directly from another RCA trust (the transferring
plan) to this RCA trust (the receiving plan), and the receiving plan does
not have a non-resident custodian and is not a foreign plan considered under
subsection 207.6(5) to be an RCA for Canadian residents participating in
the plan, include in Part 3 any lump-sum amounts transferred directly to
the receiving plan.
A copy of the agreement between the two RCA trusts must be attached to
page 3 of the T3-RCA return.
4) For keyword RCA-Property , in group T3-RCA :
Debt obligation
5) For keyword CAP-GAIN.CH , when option ''Eligible taxable capital gains
reported'' is selected in keyword FORM-T657, in the group Beneficiary
:
1985 - 1991 taxable capital gains
1992 - 1993 eligible taxable capital gains
1994 eligible taxable capital gains
1995 eligible taxable capital gains
1996 - 1999 eligible taxable capital gains
etc.
6) For keyword EXEMPT.CH , when option ''Capital gains deductions claimed
'' is selected in keyword FORM-T657, in group Beneficiary :
Deduction claimed in 1985 - 1987
Deduction claimed in 1988 - 1989 excluding ECP
Deduction claimed for ECP in 1988 - 1989
Deduction claimed in 1990 - 1999
Deduction claimed in 2000
etc.
7) For keyword Income.rca , in group T3-RCA :
Income and capital gains at the beginning of the year
Current year's income from business and property
Current year's capital gains
Losses and capital losses at the beginning of the year
etc.
8) For keyword Distribution.rca , in group T3-RCA :
Distributions at the beginning of the year
Current year distributions out of the RCA trust
Current year amounts returned to employer or employee
Current year amts transferred directly to other RCA trust
9) For keyword Options.rca , in group T3-RCA :
Option A - subs. 207.5(2) election, complete step 4
Option B - all property distributed
Option C - neither option A nor B applies
10) For keyword Deduct-RTOH , in group T3-RCA :
Refundable tax on hand at the beginning of the year
Refundable tax on hand transferred to another RCA
Refundable tax on hand transferred from another RCA
Ref. tax deducted and remitted by employer or contributor
Refundable tax remitted by custodian
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June 18, 2009
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