  What's new for T1/T2 version 6.10? |
The latest DT Max release, T1/T2 version 6.10, is available both for
downloading from our Web site and on CD-ROM. It features the same additions
and improvements as Internet v6.00.
It contains the fully functional T1 tax program for tax years 1996 to 2002, and
is fully certified for federal T1 efile using RTU (proprietary system), EFILE Online,
and the new EFILE Online Plus. (For purposes of EFILE Online Plus
however, please note that the CRA will not accept a transmission which contains
more than 60 returns.) It is also fully certified for Quebec TP1 efile.
Support for federal EDI via VAN's has been discontinued by the CRA.
This version also contains the fully functional T2 tax program for fiscal periods
1994 to 2002, and supports Corporation Internet filing, corporate efile
and Ontario CT23 D-file. Please note that there have been no changes to the
T2 tax calculations in DT Max since the previous T2 update (v5.38).
In this issue...
DT Max system changes
Database file structure
A new database file structure has been introduced. An automated
process is now in place to upgrade your existing databases. This new structure
requires that when you first install v6.10 you install all the years to which
you need access, as existing prior years are not compatible with the new database
structure.
Security system
A new security system has been implemented, compatible with the new database
file structure. This system is automatically created as part of the database
upgrade, and it supports all the features of the old system. The need for
utilities to back up and restore the security system has been removed as the
security system records are now stored in a single file, which is backed up
along with the database.
Backup system
The
backup system has been improved. The distinction between the "live"
and "image" backups has been eliminated. It is now possible to perform
a backup at any time, even while others are using the database. A feature
has been added to the restore utility allowing you to restore only the current
client or family from a DT Max backup.
Personal information keywords
The properties for personal information keywords have been altered to allow
users to change them in plans and/or in different tax years without affecting
the current and past returns.
Client letter
The generation of the client letter has been modified to enable users to choose
the font in which it is printed. A new feature has been added to allow the
letter to be exported
to a word processor where you can make last minute changes. Note that
any changes made to the letter using a word processor will NOT get transferred
back to the DT Max data; the amended letter must be printed from within the
word processor. The client letter export feature can be accessed using the
option Save as... in the File menu, or by right-clicking on
the tax return.
Changes in family makeup
Two new features are available to handle year-to-year changes in the family
makeup due to events such as separation of the spouse, or dependants moving
away from the home:
- The keyword Inactive prevents a family member from being included in
the family's tax calculations for a particular year.
- The cloning
feature available in the client list is used to create a copy of one or
more family members.
Tax highlights
Federal
The T1 forms incorporated in this 2002 release are fully certified by the CRA.
Taxpayers are now required to provide information about withdrawals made
under the home buyers' plan (HBP) on schedule 7.
Moving expenses may now be claimed in the year that they are paid.
A taxpayer who moved after 1997 and paid the moving expenses in a subsequent
year may be able to claim moving expenses on his/her tax return for the year
that the expenses were paid, and carry forward any unused amount.
Apprentice vehicle mechanics may deduct expenses for new tools purchased to
use at work as an apprentice while registered in a provincial or territorial
program leading to a licence in vehicle repair.
Qualifying adult basic education tuition assistance reported on a T4E slip
must be entered as income but may be claimed as an additional deduction.
This also applies to tax years 1997 to 2001. The education amount can be claimed
even if a taxpayer received financial assistance under certain training
programs.
Unclaimed medical expenses paid for a person who died in the year may be
claimed for any 24-month period that includes the date of death. This also
applies to tax year 2001.
Quebec
The TP1 forms incorporated in this 2002 release are fully certified by the MRQ.
The simplified return is now four-pages long.
If filing a paper return, please note that only form TPF-1.W-V
Keying Summary for the Income Tax Return is required.
Do not submit either jacket (general or simplified) to the MRQ.
Starting with year 2002, individuals forming a civil union will be subject
to the same rules as married individuals. Therefore, any reference to a spouse
in the guide, the jacket, and the schedules will include the person to whom
the taxpayer was married or with whom they formed a civil union, or their
common-law spouse, at any time in the year 2002.
The annual contribution to the Quebec prescription drug insurance plan
has been increased from $350 to $422 effective July 1st, 2002. However, the
maximum contribution for 2002 is $403.50.
Other jurisdictions
The Ontario equity in education tax credit
is a new refundable credit for parents or legal guardians of children
attending an eligible independent school in 2002. Use form T1238 titled
Equity in Education Tax Credit (EETC) for 2002, to calculate a
credit of 10% of eligible tuition fees up to a maximum of either
$350 or $700, depending on the age of each eligible child.
The Ontario School Bus Safety Tax Credit is a new refundable
credit available to self-employed school bus operators for eligible buses
acquired after June 17, 2002. It is available in addition to the regular
capital cost allowance claim.
The Newfoundland and Labrador dividend tax credit has been
reduced from 9% to 5%, effective March 22, 2002. The applicable rate actually
depends on when the taxable dividends from taxable Canadian corporations
were paid. This information should be entered in the keyword Footnotes.t .
In Prince Edward Island, the political contribution tax credit now reduces
the provincial tax payable directly.
The New Brunswick political contribution tax credit has been modified
to allow a credit of 75% of contributions up to $200. In addition,
the calculation of both this credit and the labour-sponsored venture capital fund
tax credit now directly reduce the net provincial tax payable, and appear on
form NB428 titled New Brunswick Tax and Credits. As a result, form
NB479 titled New Brunswick Credits has been eliminated.
Manitoba has introduced a new non refundable tax credit to encourage
mineral exploration. The Manitoba Mineral Exploration Tax Credit (MMETC)
is available to taxpayers who invest in eligible flow-through shares of
qualifying mineral exploration companies.
The Manitoba learning tax credit granting 4% of the tuition and education
amounts has been eliminated.
Saskatchewan has introduced the farm and small business capital gains tax
credit.
The Northwest Territories and Nunavut now have their own provincial non
refundable tax credits. The eligibility criteria and rules for claiming
them are the same as for the corresponding federal credits, but the amounts
and calculation methods differ in some cases.
New keywords
Use the keyword Tuition-Assist to report the amounts of taxable
and non taxable tuition assistance recorded on a T4E slip.
The keyword Loan-Limit can be used to limit the amount claimed
respecting the interest paid on student loans.
To input home buyers' plan withdrawals, use the keyword HBP-Withdraw
found within T4RSP. This amount is not included in income but must be
entered on schedule 7.
For employment expenses, the keyword Instrument-Exp should be used
to enter expenses related to musical instruments.
To report the tools purchased for an apprentice vehicle mechanic, use the keyword
Eligible-Tool. To record the purchases and sales of the eligible tools,
enter the information in the Tool-Cost and Disposal.t keywords respectively.
In order to ensure that the eligible expenses and correct codes appear
on the Quebec jacket, the options selected for the keywords EMPLOY-EXP
and Empl-Duties should match and be consistent.
For a taxpayer who received financial assistance under the project
Solidarité jeunesse, enter the amount (from box B of RL-5) using
the keyword Youth-Solidarity .
The keyword Trust-Info opens a group to input the tax credit
for the beneficiary of a designated trust (Design-Ben-Cr).
The keyword Education-Equity should be used in a dependant's file
to claim the Ontario equity in education tax credit (EETC). The name of the
eligible independent school and the fees paid should be entered under the
keywords Eligible-School and Education-Fees respectively.
To input the Saskatchewan farm and small business capital gains tax credit,
use the keyword CapitalGain-Cr in the ProvCredit group for Saskatchewan.
For Saskatchewan and British Columbia taxpayers, the keyword Royal-Rebate
can be used to input the royalty and deemed income rebate.
New forms
- T1229 - Statement of exploration and development expenses and depletion
allowance
- T1238 - Equity in education tax credit (EETC) for 2002
- T1241 - Manitoba mineral exploration tax credit
- NT479 - Northwest Territories credits
- NU479 - Nunavut credits
Forms under review
At the time of release, the following forms were not available from the government,
or had just been published recently. They should not be used unless otherwise noted.
- T2203 - Provincial and territorial taxes for 2002 - multiple jurisdictions
- T1219-ON - Provincial alternative minimum tax
- Schedule C - Electing under section 217 of the Income tax Act
- TP-766.2 - Averaging of a retroactive payment or of support
Efile news
Efile schedule from the CRA
January 27, 2003 - The system will begin accepting the transmission of
individual income tax returns for tax year 2002.
February 10, 2003 - Acknowledgement files for the transmission of T1 returns
should begin. Due to the volume of transmissions received during this
two-week time frame, a slight delay may occur.
September 30, 2003 - The system will close.
MRQ Internet filing system
The MRQ will be accepting tax returns filed over the Internet from February 17 to June
30, 2003.
February 3, 2003
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