DT Max - What's new for T1/T3 Internet version 27.10?

What's new for T1/T3 Internet version 27.10?

The latest DT Max program update is now available for downloading. It features the T1/TP-1 program for the tax years 2012 to 2023 inclusively and fully supports T1/TP-1 EFILE. It also features the T3/TP-646 program for the tax years ending from 2012 to 2023 inclusively. Installing this version will update your version of DT Max to 27.10.

Please note that all program versions are made available on the Internet.

In this version...

For DT Max T1 and T3

MR-69 - Authorization to Communicate Information or Power of Attorney: Reminder from Revenu Québec

DT Max T1

CRA's Express NOA service now available in DT Max
Quebec Tax Data Download now available in DT Max
Improved Onvio performance when doing batch e-signature updates
Version highlights
Revised forms
New diagnostics
1. Error prevention report
New keywords
Deleted keywords
New options
Changes pertaining to the client letter
1. New variables
2. New paragraph

DT Max T3

Version highlights
Revised forms

For DT Max T1 and T3

MR-69 - Authorization to Communicate Information or Power of Attorney: Reminder from Revenu Québec

We have been asked by Revenu Québec to remind tax preparers of the following items with respect to the MR-69 e-submission web service:
- PDF documents should not be protected by password or otherwise (e.g. PDF/A);
- A user should not add handwritten information on the mandate, as this invalidates the data barcode;
- Revenu Québec's My Account for professional representatives (MAPR) portal should not be used to file MR-69 forms produced by the DT Max software.

DT Max T1

CRA's Express NOA service now available in DT Max

Please note that our Express NOA service module has now been certified by the CRA and is available in version 27.10 of DT Max, starting February 19, 2024, for the delivery of the 2023 tax year notice of assessment in the software.

For more information on this feature, please consult the CRA Express NOA service and the Procedure to download using the CRA's Express NOA service documents available in our knowledge base.
Quebec Tax Data Download now available in DT Max

Please note that our Quebec Tax Data Download service module has now been certified by Revenu Québec and is available in version 27.10 of DT Max, starting February 19, 2024, for the delivery of 2023 tax year data. As of this date, the delivery of tax data will continue to be available for the 2022, 2021, and 2020 tax years. However, only the power of attorney (MR-69) will allow the preparer to be authenticated in previous years since the Download Code will only be usable in the current year.

The new RL-32 Slip - First Home Savings Account (FHSA) can be downloaded from the Quebec Tax Data Download service into DT Max for the 2023 and subsequent tax years.

For more information on this feature, please consult the Quebec Tax Data Download and the Procedure to download tax data from Revenu Québec documents, available in our knowledge base.
Improved Onvio performance when doing batch e-signature updates

Performance has been improved when checking for recently completed Onvio e-signature requests. DT Max now checks for status changes for only those clients that have an e-signature request with a pending status when doing a batch update in the Onvio Client List window. Any clients with no e-signature requests, or requests with other statuses, are ignored.

Version highlights

Canada Revenue Agency announces maximum pensionable earnings and contributions for 2024
1. Maximum pensionable earnings under the Canada Pension Plan (CPP)
  
  The maximum pensionable earnings under the Canada Pension Plan (CPP) will be $68,500 - up from $66,600 in 2023. The basic exemption amount for 2024 remains at $3,500.
  
  Starting in 2024, a higher, second earnings ceiling of $73,200 will be implemented and used to determine second additional CPP contributions (CPP2). As a result, pensionable earnings between $68,500 and $73,200 are subject to CPP2 contributions.
  
  These new ceilings were calculated in accordance with the CPP legislation and take into account the growth in average weekly wages and salaries in Canada.
2. CPP contribution rates and amounts
  
  Employee and employer CPP contribution rates for 2024 remain at 5.95%, and the maximum contribution will be $3,867.50 each - up from $3,754.45 in 2023. The self-employed CPP contribution rate remains at 11.90%, and the maximum contribution will be $7,735.00 - up from $7,508.90 in 2023.
  
  Employee and employer CPP2 contribution rates for 2024 will be 4.00%, and the maximum contribution will be $188.00 each. The self-employed CPP2 contribution rate will be 8.00%, and the maximum self-employed contribution will be $376.00.
  
  Contributors are not required or permitted to make contributions on pensionable earnings above $73,200.
2023 RRSP contribution deadline

The contribution deadline for 2023 is Thursday, February 29, 2024.
Quebec: One-time refundable cost of living tax credit

This one-time non-taxable tax credit was announced in November 2022. The tax credit is based on the 2021 tax return and can provide a payment of up to $600 per person. On January 25, 2024, the government announced an extension of the eligibility period for this tax credit. The deadline for filing the 2021 tax return in order to receive this credit has been extended to June 30, 2024. Those who file the 2021 tax return may also receive the one-time cost of living credit of up to $500 that was announced in the budget speech of March 22, 2022.
Interest on overdue balances

The current rate will be increased from 9% to 10% starting January 1, 2024, and will be 10% at least until March 31, 2024.
Transfer investments to your registered account - but not at a loss (usually)

Registered accounts include:

– Registered Retirement Savings Plans (RRSPs),
– Registered Retirement Income Funds (RRIFs),
– Tax-Free Savings Accounts (TFSAs),
– Tax-Free First Home Savings Accounts (FHSAs)
– Registered Education Savings Plans (RESPs) (but s. 40(2)(g)(iv)(A) and (B) do not apply to an RESP)
– Registered Disability Savings Plans (RDSPs), and
– Deferred Profit Sharing Plans (DPSPs).

If you hold investments in a non-registered investment account, you can use them as your Registered Retirement Savings Plan (RRSP) or First Home Savings Account (FHSA) tax-deductible contribution by transferring them to your account as an in-kind contribution, as long as they are qualified investments. You can also use them as a contribution (not tax deductible) to your Tax-Free Savings Account (TFSA), or some other registered accounts. Your contribution amount is the market value at the time of the transfer. If the investment being transferred is foreign shares, the contribution amount is the market value converted to Canadian funds at the exchange rate at the time of the transfer. If you are transferring a bond, the market value will include any accrued interest.

For tax purposes, you have effectively disposed of the investment (deemed disposition), so the transaction will be treated as if you sold the investment at fair market value.

If you transfer shares or other investments on which you have a gain to a registered account (or to someone else's account), you will have a taxable capital gain.

If you have a loss on investments transferred to any of the registered accounts noted below, the loss is not deductible. This rule is called a stop-loss rule.

Losses are not deductible on dispositions of property to:
- Deferred Profit Sharing Plan (DPSP)
- Employees' Profit Sharing Plan (EPSP)
- Registered Disability Savings Plan (RDSP)
- Registered Retirement Income Fund (RRIF)
- Registered Retirement Savings Plan (RRSP)
- Tax-Free Savings Account (TFSA)
- First Home Savings Account (FHSA)
Canadian Dental Care Plan (CDCP)

The Canadian Dental Care Plan (CDCP) will help ease financial barriers to accessing oral health care for eligible Canadian residents who have an annual adjusted family net income of less than $90,000 and don't have access to dental insurance.
New reporting requirements

Beginning with the 2023 tax year, issuers (including employers and pension plan administrators) of the T4 Statement of Remuneration Paid and T4A Statement of Pension, Retirement, Annuity, and Other Income must report on a T4 or T4A slip whether, on December 31st of the taxation year to which the information return relates, a payee or any of their family members were eligible to access dental insurance, or dental coverage of any kind, including health spending and wellness accounts, due to their current or former employment.

This reporting requirement is mandatory beginning with the 2023 tax year, and will continue to be required on an annual basis. Failing to report this information may result in financial penalties.

To support these new reporting requirements, the following changes were made to the T4 and T4A slips:
- Box 45, Employer-offered Dental Benefits, was added to the T4. This new box will be mandatory for all slips.
- Box 015, Payer-offered Dental Benefits, was added to the T4A. This new box will be mandatory if an amount is reported in Box 016, Pension or Superannuation. The box will otherwise be optional.
  
  The Canada Revenue Agency (CRA) may reject any T4 or T4A slip that is filed without this information.
  
  The CRA's Electronic Media Processing Unit enquiries line (1-800-665-5164) will support filers with questions related to the electronic filing of the T4 and T4A information returns.
  
  For information about completing T4 and T4A slips and summaries, visit canada.ca or contact the CRA's Business Enquiries line at 1-800-959-5525.
Doubling the rural top-up for pollution pricing rebates

To provide increased support for Canadians in rural and small communities, the government also announced it intends to double the rural top-up rate (also known as the rural supplement) for pollution pricing rebates (Climate Action Incentive payments) from 10 per cent to 20 per cent, in recognition of rural Canadians' increased energy needs and limited access to clean transportation. Rural residents will receive their first increased payment starting in April 2024 and the increase will apply in all years going forward.

All direct proceeds from the federal fuel charge are returned to the jurisdiction in which they were collected. For those provinces that do not meet the federal stringency requirements in 2023-24 - Ontario, Nova Scotia, New Brunswick, Manitoba, Prince Edward Island, Saskatchewan, Alberta, and Newfoundland and Labrador - the majority of proceeds from the federal fuel charge are returned to residents of those provinces through pollution pricing rebates.

To be eligible for the rural top-up, an individual must reside outside a Census Metropolitan Area (CMA) based on the most recent Census published by Statistics Canada before the taxation year.

To ensure that all those who are residing in a community that has previously been eligible for the rural top-up remain eligible going forward, the government also intends to continue using the CMA determinations based on the 2016 Census for the 2024-25 and 2025-26 fiscal years.

Privately owned vehicles driven on authorized government business travel - Kilometric rates

Effective January 1, 2024

The rates payable in cents per kilometre for the use of privately owned vehicles driven on authorized government business travel are shown below:

Province/Territory Cents/km (taxes included)

Alberta

53.5

British Columbia

58.0

Manitoba

56.0

New Brunswick

59.0

Newfoundland and Labrador

60.5

Northwest Territories

70.5

Nova Scotia

59.5

Nunavut

68.0

Ontario

60.5

Prince Edward Island

57.5

Quebec

58.0

Saskatchewan

55.0

Yukon

72.0

Authorized medical practitioners for the purposes of the medical expense tax credit
- Acupuncturists no longer authorized in Nova Scotia.
- Counselling therapists now authorized in Prince Edward Island.
- Psychotherapists now authorized in Quebec.
Consult the CRA's list of Authorized medical practitioners for the purposes of the medical expense tax credit for more details.
Exchange rate and other prescribed rates

Please note that the exchange rate used by default for the conversion of US dollar amounts to Canadian currency has been updated in DT Max according to the latest information available on the Bank of Canada's website.

The wording in the drop-down menu options for the keyword Exchange.t has also been updated to display the 2023 annual average exchange rates for each country, according to information published by the Bank of Canada.

In addition, the rates for meal and vehicle expenses that are used in the calculation of travel expenses have also been updated.

Revised forms
Federal
- T90 - Income Exempt from Tax Under the Indian Act
  
  Addition of line 6, Registered retirement savings plan (RRSP) or Registered retirement income fund (RRIF) income relating to exempt pension transfers from a registered pension plan.
- T1159 - Income Tax Return for Electing Under Section 216
  
  Line 20805 added for FHSA deduction.
- T1229 - Statement of Resource Expenses and Depletion Allowance
  
  New line Foreign resource expenses claimed added under Part III.
- T2043 - Return of Fuel Charges Proceeds to Farmers Tax Credit
  
  The calculation includes, from now on, the provinces of NS, PE, NL and NB on Part 2, Part 3, Part 4, Part 5 and Charts B and C of the form.
- T2203 - Provincial and Territorial Taxes for Multiple Jurisdictions
  - Field 58340, Home renovation expenses, removed for Saskatchewan.
  - Alberta no longer included on lines 13 and 14 of Schedule 9 for Part 3 (Saskatchewan).
  - Alberta added to the amount from line 58969 of the worksheet (Part 3 of the form).
  - New fields added to the Ontario surtax section.
Provincial
- T1206 - Tax on Split Income Information
  
  On page 4, renter's tax credit added to the calculation of Column 2 of line 1 of Form BC479.
- T1221 - Ontario Focused Flow-Through Share Resource Expenses (Individuals)
  
  Box 244 of the T5013 and box 155 of the T101 added for the qualifying expenses.
- T1231 - British Columbia Mining Flow-Through Share Tax Credit
  
  Box 241 of the T5013 added to line 1 of Part 1 of the form.
- T1241 - Manitoba Mineral Exploration Tax Credit
  
  Box 243 of the T5013 added to line 2 of the form.
- AB428 - Alberta Worksheet
  
  New worksheet for Line 58969 - Donations and gifts.
Quebec
- TP-517.5.5 - Designating a Deemed Capital Gain Further to the Transfer of a Family Business
  
  Addition of line 99, Capital gains deduction claimed in your federal income tax return, in section 3.4 of the form.
- TP-726.7 - Capital Gains Deduction on Qualified Property
  
  Addition of new section 1.2, Information about the corporation whose shares were disposed of (if applicable).
- TP-1026 - Calculation of Instalment Payments to Be Made by Individuals - 2024
  
  Addition of a new work chart pertaining to Additional QPP contribution.
- MR-14.A - Notice Before Distribution of the Property of a Succession
  
  Addition of line 97 pertaining to an amount from an FHSA, in section 6.1 of the form.
In-house forms
- Worksheet for calculating 2024 instalments payments
  The following lines have been added to the Credits section:
  - Return of fuel charge proceeds to farmers tax credit (line 47556)
  - Air quality improvement tax credit (line 47557)
  - Multigenerational home renovation tax credit (line 45355)
- Estimation of the calculation of federal instalment payments for 2024 using the government method
  The following lines have been added to the Credits section:
  - Return of fuel charge proceeds to farmers tax credit (line 47556)
  - Air quality improvement tax credit (line 47557)
  - Multigenerational home renovation tax credit (line 45355)
- Estimated Old Age Security (OAS) Payments
  
  New amounts for January-March 2024.
- Estimated calculation for the Family allowance measure (Quebec) for the period July 2024 to June 2025
  
  New amounts for the period from July 2024 to June 2025.
- Estimated GST/HST Tax Credit for the Period from July 2024 to June 2025
  
  New amounts for the period from July 2024 to June 2025.
- Estimated Calculation for the Solidarity Tax Credit (July 1, 2024, to June 30, 2025)
  
  New amounts for the period from July 2024 to June 2025.
- Estimated Calculation for the Canada Child Benefit (CCB) for the period from July 2024 to June 2025
  - New amounts for the period from July 2024 to June 2025.
  - On page 8, in part a - BC Child Opportunity Benefit, a new line was added for Additional annual supplement for single-parent families.
- Medical expenses checklist for 2023
  - Counselling therapists now authorized in Prince Edward Island.
  - Psychotherapists now legally authorized in Quebec.
  - Acupuncturists no longer authorized for Nova Scotia.
New diagnostics
1. Error prevention report
  
  Federal
  Residential property flipping rule
  
  Warning
  
  You have a disposition of "real estate, depreciable property, and other properties" or a "personal-use property" that has been held for less than 12 months. Beginning with the 2023 tax year, profits resulting from the disposition of real estate (including rental property) that has been held for less than 12 months are considered business income.
  
  The flipped property is deemed to be inventory in the taxpayer's business. The flipped property is deemed not to be a capital property of the taxpayer. Because of the deeming of the property as inventory, and not a capital property, the principal residence exemption does not apply for these dispositions.
  
  There are exceptions to this rule:
  1. Death: a disposition due to, or in anticipation of, the death of the taxpayer or a related person.
  2. Household addition: a disposition due to, or in anticipation of, a related person joining the taxpayer's household or the taxpayer joining a related person's household.
  3. Separation: a disposition due to the breakdown of a marriage or common-law partnership, where the taxpayer has been living separate and apart from their spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 days.
  4. Personal safety: a disposition due to a threat to the personal safety of the taxpayer or a related person, such as the threat of domestic violence.
  5. Disability or illness: a disposition due to a taxpayer or a related person suffering from a serious disability or illness.
  6. Employment change: a disposition for the taxpayer or their spouse or common-law partner to work at a new location or due to an involuntary termination of employment. In the case of work at a new location, the taxpayer's new home must be at least 40 kilometres closer to the new work location (eligible relocation).
  7. An involuntary termination of the employment of the taxpayer or the taxpayer's spouse or common-law partner.
  8. Insolvency: a disposition due to insolvency or to avoid insolvency.
  9. Involuntary disposition: a disposition against someone's will.
  This rule does not apply to a capital loss on a flipped property. You also cannot create a business loss through an inventory loss on a flipped property.
  
  If you are affected by the new rules, please enter the following disposition in the Business group as business income with the option "Profits from property flipping" in the keyword Income.bus :
  
  Description of the property Gain
  
  Building 30,000.00
  
  If you have several gains from property flipping, you must report them separately as business income.
  Quebec
  Residential property flipping rule
  
  Warning
  
  You have a disposition of "real estate, depreciable property, and other properties" or a "personal-use property" that has been held for less than 12 months. Beginning with the 2023 tax year, profits resulting from the disposition of real estate (including rental property) that has been held for less than 12 months are considered business income.
  
  The flipped property is deemed to be inventory in the taxpayer's business. The flipped property is deemed not to be a capital property of the taxpayer. Because of the deeming of the property as inventory, and not a capital property, the principal residence exemption does not apply for these dispositions.
  
  There are exceptions to this rule:
  1. Death: a disposition due to, or in anticipation of, the death of the taxpayer or a related person.
  2. Household addition: a disposition due to, or in anticipation of, a related person joining the taxpayer's household or the taxpayer joining a related person's household.
  3. Separation: a disposition due to the breakdown of a marriage or common-law partnership, where the taxpayer has been living separate and apart from their spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 days.
  4. Personal safety: a disposition due to a threat to the personal safety of the taxpayer or a related person, such as the threat of domestic violence.
  5. Disability or illness: a disposition due to a taxpayer or a related person suffering from a serious disability or illness.
  6. Employment change: a disposition for the taxpayer or their spouse or common-law partner to work at a new location or due to an involuntary termination of employment. In the case of work at a new location, the taxpayer's new home must be at least 40 kilometres closer to the new work location (eligible relocation).
  7. An involuntary termination of the employment of the taxpayer or the taxpayer's spouse or common-law partner.
  8. Insolvency: a disposition due to insolvency or to avoid insolvency.
  9. Involuntary disposition: a disposition against someone's will.
  This rule does not apply to a capital loss on a flipped property. You also cannot create a business loss through an inventory loss on a flipped property.
  
  If you are affected by the new rules, please enter the following disposition in the Business group as business income.
  
  Description of the property Gain
  
  Building 30,000.00
  
  If you have several gains from property flipping, you must report them separately as business income.
New keywords
1. In the Residency-Status keyword group:
  1. Country-Code.res : Country of residence on December 31
    
    Use this keyword to indicate the country of residence on December 31.
2. In the SEND-CDE-AFR keyword group:
  1. SEND-CEB-Debt : Canada Emergency Benefits debt indicator
3. In the AFR-Indicator keyword group:
  1. AFR-UncashedCheque : Indicator of uncashed cheques
  2. AFR-ElectCorres : Electronic correspondence preference indicator
    
    Electronic correspondence preference indicator (electronic or paper). A "True" indicator will be passed when the electronic correspondence preference is set to "Electronic mail", or "False" when it is set to "Paper mail".
4. New keyword added pertaining to new box Q1 - Adjustment for a single person (BIP) in the Quebec RL-5 slip:
  1. Benef-NoSpAdjust : RL-5 Box Q1 - Adjustment for a single person (BIP) (Yes/No)
    
    Indicates if the taxpayer received benefits under the Basic Income Program (BIP) and received the monthly adjustment for a single person in addition to the basic benefit. If box Q1 indicates "Yes", you can claim the amount for a person living alone.
Deleted keywords
1. From the AFR-Indicator keyword group:
  1. AFR-OnlineMail: A valid email address is stored in CRA
New options
1. For the keyword IndianExempt :
  
  RRSP or RRIF income relating to transfers (T90, Line 6)
2. For the keyword AFR-OnlineService :
  
  FULL - Client has full MyAccount access
  NONE - Client has no access to MyAccount
  LIMITED - Client has limited MyAccount access
3. For the keyword Prov-Res-Exp , pertaining to the federal T101 slip:
  
  CMETC Ontario [Box 155]
Changes pertaining to the client letter
1. New variables:
  1. Quebec
    
    %473 TP-726.20.2 - Capital gains ded. on ressource property [0=No, 1=Yes]
    
    (N.B.: Form TP-726.20.2 must be paper filed.)
2. New paragraph:
  1. Federal with a balance due of more than 2$ - via EFILE
    
    The CRA may charge you a penalty of $100 for each failure to remit (pay) electronically when it was reasonable to do so, if you make a non-electronic payment of more than $10,000 on or after January 1, 2024.
  2. Quebec with a balance due of 2$ and more - via EFILE
    
    Revenu Québec may charge you a penalty for each failure to remit (pay) electronically when it was reasonable to do so, if you make a non-electronic payment of more than $10,000 on or after January 1, 2024.

DT Max T3

Version highlights
1. Known issues fixed in version 27.10
  1. Incorrect entity classification box being ticked on Schedule 15
    
    In certain cases, DT Max T3 was incorrectly identifying beneficiary entities on Schedule 15. For example, when the beneficiary was a trust, DT Max T3 was ticking the Corporation box.
    
    This issue has been resolved in version 27.10.
2. T3 EFILE approval and T3 EFILE production date
  
  DT Max T3 has been approved by the Canada Revenue Agency for EFILE purposes.
  
  Please be sure to update your DT Max T3 program and recalculate your files prior to attempting an efile transmission. A recalculation ensures you are transmitting under an efile approved version. It also allows the Canada Revenue Agency's system to process the return under the correct version.
  
  The efile opening date is February 19, 2024. Please do not attempt any transmissions before this date.
  
  The service will accept T3 EFILE Trust returns for taxation years 2021, 2022, and 2023. The system will close on January 24, 2025.
3. New trust filing and stakeholder information reporting document
  
  A new trust filing and stakeholder information reporting document has been added to the knowledge base outlining the new rules and the procedure within DT Max T3 to enter the required information.
Revised forms
Federal
- T1135 - Foreign Income Verification Statement
  
  New option added for the Japanese Yen as a functional currency.
- T2043 - Return of Fuel Charge Proceeds to Farmers Tax Credit
  - Nova Scotia, PEI, Newfoundland and Labrador and New Brunswick have been added as designated provinces with a tax credit payment rate of 0.140%.
  - The Farmers tax credit payment rate for the other provinces has been revised from 0.173% to 0.186%.
Quebec
- MR-14.A - Notice Before Distribution of the Property of a Succession
- TP-1026.F - Calculation of Instalment Payments to Be Made by Trusts - 2024

February 14, 2024

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In this version...

For DT Max T1 and T3

MR-69 - Authorization to Communicate Information or Power of Attorney: Reminder from Revenu Québec

DT Max T1

CRA's Express NOA service now available in DT Max

Quebec Tax Data Download now available in DT Max

Improved Onvio performance when doing batch e-signature updates

Version highlights

Canada Revenue Agency announces maximum pensionable earnings and contributions for 2024

Maximum pensionable earnings under the Canada Pension Plan (CPP)

CPP contribution rates and amounts

2023 RRSP contribution deadline

Quebec: One-time refundable cost of living tax credit

Interest on overdue balances

Transfer investments to your registered account - but not at a loss (usually)

Canadian Dental Care Plan (CDCP)

New reporting requirements

Doubling the rural top-up for pollution pricing rebates

Privately owned vehicles driven on authorized government business travel - Kilometric rates

Authorized medical practitioners for the purposes of the medical expense tax credit

Exchange rate and other prescribed rates

Revised forms

New diagnostics

Error prevention report

New keywords

Deleted keywords

New options

Changes pertaining to the client letter

New variables:

New paragraph:

DT Max T3

Version highlights

Known issues fixed in version 27.10

Incorrect entity classification box being ticked on Schedule 15

T3 EFILE approval and T3 EFILE production date

New trust filing and stakeholder information reporting document

Revised forms