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Free income tax software options in 2021 (2020 tax year)
April 25, 2021
12:13 pm
COIN
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Norman1 said

COIN said

Same here. I don't bother entering each individual slip, just the total. However, I noticed whatever gross eligible taxable Canadian dividends dollar amount I enter on the worksheet the system automatically doubles the amount.

Righand said

That's strange because I have 5 separate T-3's and the system didn't double the total amount (and the result is the same as my separate XCEL spreadsheet.)

Do you have the latest update of Studio Tax ?

Could there have been a mix up with the actual and taxable dividend amounts?

If one enters the taxable dividend into the actual dividend field by mistake, it will get grossed up by 38% again. $100 actual dividend grossed up by 38% twice will become $190.44, almost double.  

I only enter the gross taxable dividend amount because Line 12000 only asks for the gross taxable dividend amount. The actual and dividend credit lines are redundant (in my mind).

April 25, 2021
12:21 pm
COIN
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I actually started the return a while back but did not file because I was waiting for the DUCA amended T5 and then I also received an unexpected amended T5 from another institution so I had to change the earlier inputted amounts for the dividend and interest income so now everything is all messed up.

April 25, 2021
1:11 pm
Righand
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COIN said
I actually started the return a while back but did not file because I was waiting for the DUCA amended T5 and then I also received an unexpected amended T5 from another institution so I had to change the earlier inputted amounts for the dividend and interest income so now everything is all messed up.  

You might wish to try starting fresh using autofill.
I have a lot of T-3 and T-5's etc. and it worked great, all the data compared exactly to my own manual spreadsheet.

If you wish you can print a PDF file from CRA using your CRA "My account" giving you access to the latest info that they have on file.

You could always save your first try on a USB stick in case you wish to return where you started .

April 25, 2021
1:11 pm
balanced_gic_porfolio
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Doug said

but do allow you to change your return and regenerate a new draft completed income tax return, which, presumably, generates another $0.00 "paid" invoice and payment receipt.

Doug, I filed my taxes this year using TurboTax Free Online and can confirm this is the way it works. Upon using ReFILE via TurboTax, when you complete the tax return filing it takes you into a "payment" section, but the invoice is marked zero "0.00". Thanks for your valued contributions on this forum btw, Doug.

April 25, 2021
4:55 pm
COIN
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Long story short. I aborted my first attempt and started a second attempt and all seems well. I'll take a fresh look tomorrow morning.

April 28, 2021
12:23 pm
RAV4guy
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I would like to thank BillieBob (post 55) for recommending TaxFreeway.
While I did use tax preparation software several years ago I had completed my last few tax returns by hand. This year I was facing many new tax items I was unfamiliar with, among which were pension income, linked return with a spouse and charitable donations over the allowed limit.

There was no nagging about buying. I created the 2 tax returns and when I was ready to review, print and Netfile I purchased the key for $14.95 + tax.

I am quite satisfied with TaxFreeway and will use it again.

April 30, 2021
8:37 am
COIN
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Righand said

You might wish to try starting fresh using autofill.
I have a lot of T-3 and T-5's etc. and it worked great, all the data compared exactly to my own manual spreadsheet. 

Can autofill handle divided tax credit, foreign tax credit and Form 1135? Thanks.

April 30, 2021
9:05 am
Norman1
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CRA's auto fill service helps with the slips and info it receives from Canadian financial institutions and employers.

However, it won't work with foreign income sources and foreign holdings that don't submit info to CRA. For example, a shareholder dividend reinvestment plan one has directly with a US company. The plan will send a Form 1099-DIV and file a copy with the IRS only. That won't show up in CRA auto-fill.

One still needs to check the auto-fill afterwards to see if anything is missing or incorrect. Some people have found that auto-fill is missing a slip or two, for some reason.

Also, would gains reported for strip bonds on auto-filled T5008's (Statement of Securities Transactions) be handled correctly? Buying strip bonds for $9,900 and having them redeemed at maturity for $10,000 later actually gives one $100 of interest and not $100 of capital gains!

April 30, 2021
10:42 am
savemoresaveoften
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Unless you only have employment, interest and simple Cad dividend income, I would advise against using autofill. The time needed to double check the T5008, whether FX is already converted properly at source slips etc, ended up taking up more time than inputting the slips manually. Entering manually also give you a much better idea what exactly you are doing, and whether the calculated tax makes sense or not as I add more slips.

Autofill is simple but only work well for simple tax return when its mostly T4 only...

April 30, 2021
11:20 am
Norman1
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Same with any foreign investments that are not held through a Canadian brokerage account or a Canadian investment plan trustee.

CRA won't see a T1135 filed for shares of a US company held directly or held through a shareholder plan administered in the US.

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