This TaxCycle release brings the 2017 updates to calculations and forms for T1, TP1 and T5013 forms. It also adds numerous smaller enhancements, many of which were requested by attendees on our seminar tour.
This version is available as an automatic update, as a full download from our website, and a free trial.
Who should install this release?
Please update to this release to try the latest forms and calculation changes to T1, TP1 and T5013 returns. You can begin data entry, but must await CRA and Revenu Québec certification before filing.
Are you updating from TaxCycle version 7.0.32622.0?
On December 21st, we released version 7.0.32622.0 as a major update with all the changes listed below. If you installed that update, you will have already seen these release notes. On December 22nd, we released a patch to fix two issues:
- A crash that was occurring when a letter was open on screen in TaxCycle and you saved options or triggered a calculation change in the file.
- A reported T2 issue with the Schedule 10 Worksheet (S10WS) conversion creating a duplicate copy in TaxCycle. A review message will alert you if there is a duplicate S10WS; choose the Quick Fix solution to delete the extra worksheet if required.
Patching these issues required a version number change. There are no other changes between these two version numbers.
- 2017 T1 forms and calculations
- 2017 TP1 forms and calculations
- 2017 T5013 preview release
- T2 enhancements
- Updated T1/TP1 Client and Joint Client letters
- Other changes to templates
- Simplified title bar of the TaxCycle window
- New!—Pre-flight button for batch transmissions
- Calculation change bulletin
- Additional file name and folder variables
- Customer-requested fixes and enhancements
2017 T1 forms and calculations
This release updates the T1 federal and provincial schedules, as well as many other forms, to the latest versions available from the Canada Revenue Agency (CRA).
All forms, other than authorization forms, remain in a Preview state and will show a watermark. The Preview watermark will be removed in early January from the majority of T1 forms. In the meantime, we expect to receive a significant number of final forms from the CRA and complete our carryforward and calculation testing.
We recommend waiting to perform any batch carryforward of files to 2017 until those changes are complete.
Below you will find a list of significant changes for 2017.
Federal changes for 2017
- The Canada caregiver amount has replaced the previous infirm dependant and caregiver amounts. It can be claimed for the client's spouse or the eligible dependant on line 304 of Schedule 1, as well as other dependants 18 and older on line 307, if they are dependant on the client because of an impairment.
- The education and textbook amounts have been eliminated. Only unused amounts from prior years plus tuition amounts for the current year may be claimed in 2017. Only current-year tuition amounts can be transferred to the client's spouse or parents or grandparents.
- The children's arts amount and children's fitness tax credit have been eliminated.
- The public transit amount has been eliminated for the cost of long passes after June 30, 2017.
- Though regular UCCB payments ended in June 2016, the RC62 and related lines of the return remain for retroactive payments or repayment of benefits made in 2017.
- Cumulative eligible capital (CEC) has transitioned to a new class 14.1 effective January 1, 2017. For fiscal periods that start in 2016, transitional rules may apply to any dispositions that occurred before January 1, 2017.
Principal residence—reporting all dispositions on the T2091
For 2017, a T2091 (or T1255 for a deceased client) must be completed for all dispositions of a principal residence, regardless of whether a taxable capital gain resulted from the sale, or not.
To report such dispostions in TaxCycle:
- Complete the table at the bottom of Schedule 3 with the address, year of acquisition and proceeds of disposition.
- Use the QuickFix on the T2091/T1255 form used to report this disposition field to generate the T2091 or T1255 form. (The T2091 or T1255 are not visible until you complete this step.)
- The line 179 boxes below the table are automatically checked according to the entries in the table.
- Navigate to form T2091, or T1255, and complete the form as appropriate.
- Certain information from the T2091, or T1255, will be transmitted with the return through EFILE and will be considered filed with the return. A paper copy should not be sent to the CRA unless they request to see the form.
New version of the T183 form
- This form has been updated to the new 2017 version which includes the enlarged Part F to indicate how the client wishes to receive their notice of assessment. Note that if the client is signed up or signs up for online mail, or chooses to have the tax preparer receive it through the Express NOA service, CRA will not mail a paper copy to the client.
- The authorization to represent the client for this year's return only is no longer part of the T183, but can still be indicated to CRA by answering the related question in the Filing section of the Info worksheet. It is then transmitted with the return through EFILE. This is only relevant if the preparer does not have a T1013 on file with CRA for the client.
- New non-refundable amounts have been introduced for volunteer firefighters and search and rescue volunteers to match the federal amounts.
- The back-to-school amount has been eliminated.
- The tuition and education amounts have been eliminated for studies after June 30, 2017. Unused amounts can be claimed in a subsequent year.
- The employee's tool tax credit has been eliminated. Any unused one-time trade entry credit from a previous year can still be claimed.
- The maximum tuition fee income tax rebate has been reduced in preparation for it's elimination next year.
- The primary caregiver tax credit is now limited to a total of $1,400, regardless of the number of care recipients.
- The advance tuition fee income tax rebate, odour-control and nutrient management tax credits have been eliminated effective April 2017.
- The new seniors' public transit tax credit has been introduced for Ontario residents 65 and older for transit services after June 30, 2017.
- The tuition amount has been eliminated for studies after September 4, 2017 and the education amount has been eliminated for studies after August 2017. Unused amounts can be claimed in a subsequent year.
- The Ontario caregiver amount replaces the previous infirm dependant and caregiver amounts for dependants 18 and older.
- The children's activity and healthy homes renovation tax credits have been eliminated.
- The apprenticeship training tax credit has been eliminated for apprenticeships beginning after November 14, 2017.
- The tuition and education amounts have been eliminated. Only unused amounts from a previous year can be claimed by the client.
- The federal changes to the education amount as well as the infirm dependant and caregiver amounts also apply for Yukon tax purposes.
- The children's arts amount and fitness tax credit have been retained for Yukon tax purposes.
2017 TP1 forms and calculations
This release updates the TP1 jacket and all schedules based on 2017 Revenu Québec specifications. All forms remain in a Preview state and will show a watermark.
This update also includes the following new forms:
- TP15YearSummary (five-year summary) with carry forward from prior years.
- TP-274 Designation of Property as a Principal Residence
- TP-274.S Reduction of the Capital Gain Deemed to Have Been Realized on a Principal Residence
- TP-1029.AE Tax credit for the upgrading of residential waste water treatment systems (see more below)
- TP-1029.RE Tax credit for the restoration of a secondary residence (see more below)
Basic personal amount—The basic personal amount has been increased from $11,550 to $14,890.
Simplified calculation of personal income tax credits—The rates and amounts of the following tax credits have been adjusted to simplify calculations:
the basic personal amount (line 350);
the age amount, the amount for a person living alone and the amount for retirement income (line 361);
the amount for dependants and the amount transferred by a child 18 or over enrolled in post-secondary studies (line 367); and
the amount for a severe and prolonged impairment in mental or physical functions (line 376).
Schedule P—Tax credit respecting the work premium
We now calculate the eligibility requirements respecting the work premium and the adapted work premium. In prior years users had to determine if their clients were eligible for the premiums. The new section at the top of the TPP helps us determine eligibility:
Additional tax relief beginning in 2017
All taxpayers subject to Québec income tax will enjoy an additional tax reduction, thanks to a decrease in the tax rate for the first bracket of taxable income from 16% to 15%.
Through this measure, the tax rate applicable to the first $42,705 of taxable income will be the lowest it has been in the past 30 years. As a result, taxpayers will enjoy a tax reduction of up to $278.
This is in addition to the following measures that the Québec government implemented in March 2017 to substantially ease the tax burden on individuals:
- Eliminating the health contribution for all Québec taxpayers (see below)
- Increasing the basic personal amount (see above)
Tax credit for workers 63 or older
The age of eligibility for the tax credit for workers has been lowered from 64 to 63. In addition, the maximum eligible work income has been increased from $6,000 to $8,000 for workers 65 or older. The maximum tax credit is $1,200.
Tax credits for donations and gifts
The rate of the tax credit for donations and gifts has been increased for individuals whose marginal tax rate is higher than 24%.
Tax credit for home-support services for seniors
The tax credit rate has been raised from 34% to 35% of your eligible expenses.
Tax credit for caregivers
The tax credit that a person taking care of his or her spouse can claim has been increased from $1,000 to $1,007.
Elimination of the health contribution
On October 25, 2016, the Minister of Finance of Québec announced the elimination of the health contribution as of 2017. Consequently, starting January 1, 2017, taxpayers no longer have to pay into the health contribution. The TPHealth worksheet and lines 448, 448.1 and 448.2 of the TP1 jacket have been removed to reflect this change.
Québec prescription drug insurance plan
On July 1, 2017, the contribution rates for the Québec prescription drug insurance plan were increased. Consequently, the maximum premium has been increased from $660 to $667. However, the maximum premium payable for the entire 2017 taxation year is $663.50.
RénoVert tax credit (TP-1029-RV)
The period of eligibility for the RénoVert tax credit has been extended to March 31, 2018. This applies to all recognized work other than certain types of work related to water conservation and quality, which may entitle you to the new tax credit for the upgrading of residential waste water treatment systems.
TP-1029.AE—Tax credit for the upgrading of residential waste water treatment systems
This form affects TP1 lines 461 and 462 (code 33). Taxpayers could be entitled to the refundable tax credit for the upgrading of residential waste water treatment systems if they paid qualified expenditures for work done to their principal residence's waste water treatment system under a contract with a qualified contractor signed after March 31, 2017. Subject to certain conditions, expenditures related to work done on a cottage could also qualify.
TP-1029.RE Tax credit for the restoration of a secondary residence
This form affects TP1 lines 461 and 462 (code 34). If taxpayers meet the conditions below, they could be entitled to a tax credit for the restoration of a secondary residence:
- You (or your spouse) paid eligible expenses to restore a secondary residence that was damaged by the severe flooding that hit a number of Québec municipalities from April 5 to May 16, 2017.
- You obtained, from the Ministère de la Sécurité publique or the municipality where the residence is located, a certificate confirming that the subjacent land was hit by flooding that occurred in a territory covered by the Programme d'aide financière spécifique relatif aux inondations survenues du 5 avril au 16 mai 2017 (special financial assistance program for the flooding from April 5 to May 16, 2017).
- The residence does not qualify as a principal residence under the program.
Preview of 2017 T5013
This release adds the 2017 T5013 module to TaxCycle. It remains in preview and is not certified for filing. However, you can begin data entry on this form. You will see a warning and watermark when you open or carry forward a return.
T5013Slips—Explanation of amended slips
For any amended or cancelled slips, CRA now requires a description to explain the reason for the amendment. That description needs to be entered in the Info worksheet prior to filing.
New!—S8RecWS for reconciling changes in fixed assets during the partnership's fiscal year.
The S8RecWS worksheet shows changes to capital assets made over the tax year and reconciles the amounts calculated for accounting and tax purposes.This is similar to the T2 worksheet. See Schedule 8 CCA and Assets help topic.
Line 210 removed on the T5013 FIN: Does the partnership have any property that is eligible capital property?
T5013 SCH1, lines 108, 153, 405 eliminated
Removed the following lines on the Schedule 1:
- Line 108—Income recapture inclusion on sale of eligible capital property from Schedule 10
- Line 153—Residual income inclusion on sale of eligible capital property from Schedule 10
- Line 405—Cumulative eligible capital deduction from Schedule 10
Revised to remove separate reporting for gifts to Canada, a province or territory.
T5013 SCH6, line 982 eliminated
Line 982—From Schedule 10 (enter the amount from line 103) was removed. This applies to subsection 14(1.01) or (1.02) election for eligible capital property (other than goodwill) disposed of in the fiscal period.
When you select class 43.1 and/or 43.2 on Schedule 8, the following new types of asset codes become available in column 301 of the table at the bottom of the form:
- 23 Geothermal energy equipment acquired after March 21, 2017
- 24 Thermal energy source acquired after March 21, 2017
Effective January 1, 2017, the rules governing eligible capital property (ECP) are replaced by the new Class 14.1. Property that would be eligible capital property prior to January 1, 2017 will become depreciable property in the new Class 14.1 after December 31, 2016. Please review the Schedule 10 and Class 14.1 help topic.
A new type of partner code has been created for Registered charities and registered Canadian amateur athletic associations in field 105 of the Schedule 50. Code 10 will be used to identify these types of partners.
- A new default data monitor have been added for net provincial or territorial tax payable. To see this data monitor, you must add it from the list of presets (right-click on a data monitor and select Presets, then Net prov/terr tax), or revert to the default data monitors (right-click on a data monitor and select Default data monitors).
- The behaviour when pressing the Tab key between fields on the S100, S101, S125 and S140 has been improved.
- Line E on the CDA current, prior and next year worksheets now allow decimals so line F is properly calculated.
- A review message was added to the T1044 if “Method used to record assets” is blank under part 3 for the form. (Thanks to a suggestion on our online community.)
- Sample files for the S8Rec worksheet are now included when you install TaxCycle. You can find them in the following folder: C:\Program Files (x86)\Trilogy Software\TaxCycle\Samples. The documentation on the S8Rec has also been updated. Please review the Schedule 8 CCA and Assets help topic.
- This release resolves the Known Issue affecting line 013 on AT1 Schedule 12 (see original known issue).
- Customer-requested—GIFI import from CCH Engagement now brings in retained earnings and dividends as either positive or negative to match the original file.
- Customer-requested—T2 Auto-fill now uses a case-insensitive compare when comparing downloaded name and address data to entered data.
- Customer-requested—The T2 T183 printed workflow item is now named to T183 Corporate printed (formerly "Printed T183 Corporate"). The item now appears just below the T1 "T183 Individual printed" item in the Client Manager filters. (We had reports of customers selecting the T1 "T183 printed" task for filtering T2 returns and not getting results.)
Updated T1/TP1 Client and Joint Client letters
This release updates the T1 Client (CLetter) and Joint Client (JLetter) letters, in both English and French. This version includes revised sections for T1 filing and return status, as well as new Québec snippets to enhance TP1 content without complicating the letters. Changes include:
- CLetter (and French version LettreC) refers to a new snippet called QCSummary (SommaireQC) that inserts the Québec-specific sections for filing status, as well as refund or balance owing.
- JLetter (and French version LettreJ) refers to two new snippets. QCJointFiling (ProductionConjointeQC) summarizes the TP1 filing status for both spouses. QCJointBalance (SoldeConjointQC) provides details of the refund or balance owing for both spouses.
Other changes to templates
- Customer-requested—The PreSeason, JPreSeason letters in T1 2017 (and the PostSeason and JPostSeason letters in T1 2016) now only show a count of the T5008 slips, rather than listing all of them. Learn how to do something similar for other slips in the new Listing slips help topic.
- Customer-requested—The paragraph indicating that the taxpayer has No foreign property in the 2017 T1 CLetter and JLetter no longer shows for non-residents.
- Customer-requested—The sections in the CLetter and JLetter that refer to a spouse no longer show if the taxpayer is widowed. These include those relating to: family status changing during the year, Canada Child Benefit (CCB), GST/HST credit, Trillium OSTC payments.
Simplified title bar of the TaxCycle window
Based on recent feedback on our community forum, we have modified the text that appears in the title bar at the very top of the window when you have a file open:
- For T2, T3010 and T5013 returns, it now shows the year end rather than the module year:
- For all returns, it no longer shows the file name unless you enable it on display options:
New!—Pre-flight button for batch transmit
A new Pre-flight button has been added to the Batch Transmit page in the Client Manager. Click this button to rerun the calculations on the returns and identify any changes since the last time the file was saved. This is particularly useful if you prepared and finalized returns earlier in the season and are waiting to transmit them upon EFILE system opening. It alerts you to any changes without having to open the file and check. Any detected changes are not saved back into the file.
- Create a batch of files in the Client Manager.
- On the batch screen, select Transmit and then a type, such as T1 EFILE.
- Click the Pre-flight button to check for any changes.
- Messages will appear for any files that have calculation changes. We recommend you review these files before transmitting the return.
- Under module options, you can set the dollar threshold that triggers these messages. Open options, expand the T1/TP1 section and click on the Variance page.
- Change the value in the Calculation changes section.
Calculation change bulletin
- The bulletin that appears when calculations have changed in a return now asks you to Acknowledge those changes. Previously, you had to close and reopen the file to hide this message and proceed to filing the return.
- If you close the file without acknowledging the changes or saving the file, the bulletin will reappear the next time you open the file.
- If you don't acknowledge the changes but do save the file, you will see a message reminding you that by saving the file you are effectively acknowledging that the calculations have changed.
Additional file name and folder variables
Based on customer feedback, have added the following new print configuration and magic folder variables.
- Coupled returns (uses the principal taxpayer's last name): The Louis C Abbot Family
- Single taxpayers: Mr Louis Abbot
- Non-T1 returns: This variable returns the entity name. For example, T2 is the corporation name and T3 the name of the trust.
- Coupled returns (different last names): Abbot, Louis & Voss, Jennifer
- Coupled returns (same last names): Abbot, Louis & Jennifer
- Single taxpayers: Abbot, Louis
- Follows the file naming convention as defined in module options. For example, SuggestedFileName can have the module year, year end or adjusted applied. It does not contain the file extension.
Customer-requested fixes and enhancements
- Smart Copy/Paste has been added for the 2017 T2125.
- A new review message will alert you when the dependant address differs from the principal taxpayer's.
- Batch carry forward of competitor files now correctly prepends the module year based on file naming options for the return type.
- The T3010 icon on the Start screen now shows the years 2013-17 to better indicate the types of returns you can prepare with it.
- When exporting a report from Client Manager, the default name of the report now uses the column layout name.
- Posting data from DoxCycle now records an event in the History of the TaxCycle file.
- When attempting to open a prior-year return (from right-click or the Data menu), for which the file has moved or is missing, the dialog allowing you to re-select a file now points to the default folder for prior-year files.
- When you carry forward a T2 file that was created in a different T2 module, and the file goes missing or is moved, when you attempt to relink the file, you are now permitted to link to a file made in a different T2 module. For example, if it was a 2015T2 file that created a 2017T2 file, and you moved the file, when you went to relink, TaxCycle would previously only allow you to relink to a 2017T2 file. This has been corrected.
- TaxCycle T1 no longer carries forward names for individual T5008 slips by default. To carry forward T5008 slips, you must first enable the related setting in T1 New File options: