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Pre-Certified Studio Tax 2015
February 16, 2016
1:06 pm
Ed
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The auto-fill program that the CRA officially rolled out today draws information already on file related to T3, T4 and T5 slips, RRSPs, amounts owing under the Home Buyers’ and Lifelong Learning Plans, non-capital losses carried forward from prior years, capital gains and losses in other years, federal and provincial tuition, education and textbook carryover amounts, installment payments and more, to automatically complete all the appropriate fields, without the need of a third party. So why can't the CRA allow filers to deal directly with them? Because accountants, tax preparation companies and their lawyers are fighting hard not to let it happen. Too bad. It would be cheaper for tax payers and certainly safer.

March 27, 2016
4:21 pm
kanaka
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Ok so my ongoing saga. I am trying to switch from PC to Mac. I have been a Turbo Tax user fro years and had already purchased for 2015 so did taxes on PC. I want to sell our PC's and be out of Windows all together. So I re-input everything for 2015 into Studio Tax. Not as automated as Turbo Tax and going a bit backwards in actually really knowing what forms you need. A little learning curve to deal with...not a big deal. I have some T5's and will split with spouse and some all for me as only in my name. So i guess i misinterpreted what -1 was to be used for. So I fixed all the -1's to 100 and viola!! So I still come out better, less to pay, using Studio Tax BUT I don't see where the 50% moved to my wife's forms. Is it NOT automatic? And do I have to dually input the 50% on my wife's as well?

March 27, 2016
4:28 pm
AltaRed
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I haven't tried splitting T5s from joint accounts using Studio Tax so don't know. Have you tried running the calculation, i.e. preview your return and then preview your spouse's return? Perhaps the carryover does not happen until you 'save' the data? Just a thought.

Slightly off-topic comment, but I rarely have ever had anything 50/50 joint with spouse. Usually either she, or I, have made disproportionate contributions to such accounts, and/or different timing, and thus splits are something other than 50/50.

March 27, 2016
11:43 pm
kanaka
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I have always had higher income than my wife and have always done 50-50. This year I had 2 specific T5s that only had my name and they were recipient type 1. I used Turbo Tax and the split automatically moves 50% to my wife return and this did not happen using studio tax and yes I ran the income spitting thing at the end and it worked for splitting only and has nothing do with T5s. We are both 66 so you might be thinking about another version of income splitting??? The 2 T5s in question I did the split on turbo tax and then tried to find out if I was allowed to do so. Not an easy find....so I made those 2 at 100% for me and ran income splitting and it came out to pay 1 cent less so matter how you slice or dice splitting it all works out the same rather than possibly being picked up for splitting a T5 I was not allowed to I took the full brunt and the other income splitting turned out only once cent different. So it is as broad as its long.

I still don't have a match of numbers from turbo tax to studio tax line to line so will assume the T5 splitting does not work as slick as turbo tax and will do a dual entry in studio tax. If those are the few differences...no problem. I was just hoping someone could actually confirm my thoughts.

I will let you know tomorrow.

March 28, 2016
3:31 am
Saver-Mom
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I believe AltaRed is correct, and that just because an account is called joint does not allow you to split the interest on tax returns. The interest should be split and attributed proportionately to the contributor. Otherwise, it is tax evasion.

I agree the govts (fed and prov) should offer direct tax preparation on-line.

I also think the whole system is needlessly complex and employs a whole body of intelligent people for no good purpose, creating nothing of value.

March 28, 2016
10:40 am
kanaka
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I hear what you are saying, BUT when I changed 14,000 on a T5 from 50% to 100% the income splitting jostled it to remain the same amount of $ due either way. Who ever the mathematician that figured out the income tax forms was wizard. I said to my wife since it was the same either way I doubt if CRA would bother saying anything. I doubt if I will ever see 14,000 on a T5 again. And really, who tracks who, husband or wife, invested in a GIC to report interest?

March 28, 2016
1:54 pm
AltaRed
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Whether it makes a difference in this year's tax returns for tax payable is irrelevant. The issue is Attribution of Income and there are strict rules in the ITA about that. Being cavalier about 'casual splitting' of investment income is fraught with potential consequences IF CRA starts asking for the paperwork.

You say... who tracks who, husband or wife, invested in a GIC to report interest? I reckon the bulk of taxpayers who know about Attribution of Income do so. I have done so for decades and kept the paperwork. That said, there are no doubt a lot of married taxpayers who are ignorant of the law and split interest income in particular 50/50. While I suspect CRA knows a lot of people do this knowingly, or unknowingly, they likely have bigger fish to fry most of the time and choose to ignore.....for now. Do you really want to be offside with the law?

March 28, 2016
2:16 pm
kanaka
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AltaRed said

Whether it makes a difference in this year's tax returns for tax payable is irrelevant. The issue is Attribution of Income and there are strict rules in the ITA about that. Being cavalier about 'casual splitting' of investment income is fraught with potential consequences IF CRA starts asking for the paperwork.

You say... who tracks who, husband or wife, invested in a GIC to report interest? I reckon the bulk of taxpayers who know about Attribution of Income do so. I have done so for decades and kept the paperwork. That said, there are no doubt a lot of married taxpayers who are ignorant of the law and split interest income in particular 50/50. While I suspect CRA knows a lot of people do this knowingly, or unknowingly, they likely have bigger fish to fry most of the time and choose to ignore.....for now. Do you really want to be offside with the law?

Offside of the law no. But my point was wether I did 50-50 or 100 for me....it did not make any difference to the amount of tax to be paid....so would be a hard sell to be accused of evading tax.

March 28, 2016
2:18 pm
kanaka
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kanaka said

I have always had higher income than my wife and have always done 50-50. This year I had 2 specific T5s that only had my name and they were recipient type 1. I used Turbo Tax and the split automatically moves 50% to my wife return and this did not happen using studio tax and yes I ran the income spitting thing at the end and it worked for splitting only and has nothing do with T5s. We are both 66 so you might be thinking about another version of income splitting??? The 2 T5s in question I did the split on turbo tax and then tried to find out if I was allowed to do so. Not an easy find....so I made those 2 at 100% for me and ran income splitting and it came out to pay 1 cent less so matter how you slice or dice splitting it all works out the same rather than possibly being picked up for splitting a T5 I was not allowed to I took the full brunt and the other income splitting turned out only once cent different. So it is as broad as its long.

I still don't have a match of numbers from turbo tax to studio tax line to line so will assume the T5 splitting does not work as slick as turbo tax and will do a dual entry in studio tax. If those are the few differences...no problem. I was just hoping someone could actually confirm my thoughts.

I will let you know tomorrow.

So Studio Tax has replied with in 24 hours. Very nice!!

My Question was:
I assume you have to do dual entry for any T5 splits and the split does NOT move to the spouses return forms?

Response:
Yes for the Mac version. The Windows version has a feature that will let you save on retyping by pressing a copy button.

March 28, 2016
6:10 pm
SavingIsGood
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>I believe AltaRed is correct, and that just because an account is called joint does not allow you to split the interest on tax returns. The interest should be split and attributed proportionately to the contributor. Otherwise, it is tax evasion.

How or who can you prove that spouse contributed 80% and you 20%? No way. Therefore do splitting to max benefit.

>I also think the whole system is needlessly complex and employs a whole body of intelligent people for no good purpose, creating nothing of value.

Absolutely. Same as massive talent is wasted creating idiotic computer games where the only point is to kill 10000 'enemies'. I just wander when will rape game be released...
Currently 99% of commuters use mobile phone to play moronic games. I wander what those people did Before smart phones or cell phones in general? Most likely they were more literate or well rested after a refreshing nap.

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