What's new for DT Max T1 Internet version 9.12?

The latest DT Max T1 release, Internet version 9.12, is currently available for downloading.

In this edition...

Known issues fixed in v9.12

Amount from box P of RL-5 being reported on line 232 of the T1 return
Tax credit respecting the work premium granted to the designated child (Quebec)
Quebec non refundable tax credits carried forward in certain circumstances although needed in the year (Quebec)
Spouse with no income, dependent children (SK)
Other employment income and work premium (Schedule P) (Quebec)
Canadian interest income paid in US funds
Quebec efile error codes L00515 and L00516 (Quebec)

Improvements

QUEBEC

New optimization regarding the designated child on Schedule P - Tax credit respecting the work premium

A dependent child who has earned income (employment, business) can only claim the work premium if they do not appear on their parents' Schedule P or Schedule A (line 27). The same rule applies for the QST credit, which cannot be claimed by a dependent child (all other requirements being met).

Starting with version 9.12, DT Max automatically assesses whether it would be more advantageous for a dependent child who is working to claim the work premium and the QST credit (if 19 or older) for themselves, compared to the tax benefit that this child provides his/her parents (i.e. potentially higher amounts of work premium and QST credit).

Please be advised that this new optimization does not take into consideration the impact of not claiming the child on Schedule K in cases where the parents are subject to the Quebec prescription drug insurance plan.

New diagnostics are in place to warn you when DT Max has performed this optimization, and about the Schedule K limitation.




Change of marital status - Living in a conjugal relationship

In accordance with Quebec tax regulations, when a taxpayer begins a conjugal relationship the amount for a single-parent family is cut the month following the change. Hence, we do not wait for the actual marital status change per se, which occurs in most cases when the 12-month period of living in a conjugal relationship is completed.

The StatusChange keyword now permits you to log the date when the taxpayer started to live in a conjugal relationship. DT Max will then cut the single-parent amount. This will prevent your clients from being penalized by Revenu Québec down the road for the refund of amounts deemed to have been overpaid in the 2006 return.




Entering FICA foreign income for Quebec

Revenu Québec does not recognize contributions to a foreign social security system as being eligible with respect to income tax paid on non business income for purposes of the foreign tax credit.

Use FICA-Contrib to enter contributions to a foreign social security system under the Federal Insurance Contributions Act, called "FICA contributions", which are included in the foreign tax paid with the keyword Tax-Paid.

For the calculation of the Quebec foreign tax credit, the amount entered with FICA-Contrib will be deducted from the amount entered with Tax-Paid .