RESOLVED: Transferring Donations Between Spouses

We discovered an issue with transferring donation amounts between spouses in coupled returns in TaxCycle T1 2019. This issue occurs when both the principal taxpayer and spouse have donations and tax payable.

TaxCycle should combine all donations and claim them on the return for the person with the most tax payable. And if the claim reduces that person's tax payable to zero, TaxCycle should claim any remaining donations on the other person's return. However, TaxCycle currently only claims the donations on the return where they are entered, which can result in a lower family refund as the first $200 in donations are claimed at a lower rate.

Workarounds

We recommend you review the donations claims between spouses and, if required, use one of the following methods to adjust the claim:

• In the Donations section on the Optimizations worksheet, select No in the Optimize field to reveal a section on the Donations worksheet where you can choose who claims the donations.
• On the Donations worksheet, right-click on the donations table and select Transfer all donations to the other person.
• In the calculation on one person's Donations worksheet, override the amount transferred to or from the spouse. TaxCycle then shares this with the other person's return.

Resolution

TaxCycle version 9.1.38499.0 resolves this issue.