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TaxCycle 10.1.42313.0—Certified for T1 EFILE (Revised)

The Canada Revenue Agency (CRA) has certified TaxCycle T1 for filing 2020 returns when EFILE systems open on Monday, February 22, 2021. 

Get this version as an automatic update, full download from our website or a free trial. (To deploy auto-update files from your network, see the Auto-Update Files page.)

Release Highlights

Update

On February 22, 2021, we released an update with the following changes since version 10.1.42284.0:

  • Revenu Québec approval for using TaxCycle T1/TP1 2020 to transmit returns to NetFile Québec (see below).
  • Resolution of Known Issue: Line 20 on Québec Schedule Q (TPQ).
  • Fix for an issue causing TaxCycle to hang when attempting to batch print or family print.
  • Fix for an issue where the date inserted after receipt of an e-signature was obscured on the T183 form.
  • Removal of the reference to sign the RC232 from the T3010 client letter.

TaxCycle T1 2020 is Ready for EFILE

The Canada Revenue Agency (CRA) has certified TaxCycle T1 2020 for electronic filing when the systems reopen on February 22, 2021. As of that date, you can use TaxCycle T1 to access the following electronic services:

  • T1 EFILE for 2017, 2018, 2019 and 2020 initial personal income tax and benefit returns.
  • Auto-fill my return (AFR) for data from 2016 to 2020 (AFR for 2016 to 2019 only retrieves slip data).
  • ReFILE for 2017, 2018, 2019 and 2020 amended T1 returns.
  • Express NOA for notices of assessment from 2017, 2018, 2019 and 2020.
  • T1135 foreign income verification statement for 2017, 2018, 2019 and 2020.
  • Pre-authorized debit (PAD) requests for 2020 (PAD only supports paying a balance due on current year returns).

AuthRep Authorization/Cancellation Request (formerly T1013) from TaxCycle T1 2019 and 2020 became available on February 8, 2021.

Form T2203 Provincial and Territorial Taxes for Multiple Jurisdictions remains in progress and shows a Preview watermark. Returns for clients subject to tax in multiple jurisdictions are therefore currently excluded from EFILE. We will remove this exclusion in an upcoming release.

All other T1 forms are final.

Recording E-signatures on T183 Forms

The CRA has new requirements when collecting electronic signatures on T183 forms. The form must report the date and time the form was electronically signed. This information is then transmitted to the CRA through T1 EFILE.

If you use TaxFolder or DocuSign®, TaxCycle automatically records the date and time. However, if you use a different service for e-signatures, you must enter the date when the signature is confirmed before transmitting the return. To do this:

  1. In the Transmit sidebar, click the e-signature link to confirm receipt of the signature.
  2. TaxCycle automatically enters the current date and time using the 24-hour format. Adjust the date and time if required.
  3. Click Confirm to save the date.
  4. The date and time are recorded in Part F of the T183, and in the workflow and history of the TaxCycle file.

Screen Capture: E-signature date

Contact Person for T1 Returns

The CRA has discontinued the option that allowed clients to authorize you to represent them for that particular return, either by phone or by email.

Instead, you can set an expiry date for the pre- or post-assessment review contact, after which the CRA will contact the client. The field to set an expiry date appears on the Info worksheet when you select Contact Preparer as either the pre- or post-assessment review contact.

Contact person for this return

Also note that this authorization does not allow you to access client information with CRA over the telephone.

TaxCycle TP1 2020 Ready for NetFile

Revenu Québec has approved TaxCycle T1/TP1 2020. You can now use TaxCycle to file 2017, 2018, 2019 and 2020 TP1 returns. To learn how to file TP1 returns from TaxCycle, review the TP1 NetFile Québec help topic. You may also file adjustments to TP1 2019 and 2020 returns. See the TP1 NetFile for Adjusted Returns help topic.

You may also use Tax Data Download (TDD) to retrieve client data from Revenu Québec for 2018, 2019 and 2020. To learn how to download tax data from Revenu Québec, read the Québec Tax Data Download (TDD) help topic.

Quebec Schedule H (TPHWS) and form TP-1029.8.61.64

This version includes Schedule H (TPHWS) and form TP-1029.8.61.64, Tax credit for caregivers.

  1. Complete one TPHWS for each person for whom the taxpayer is claiming the credit.
  2. If the TaxCycle file contains dependants, select the dependant's name from the drop down list on the First name field to bring in their data.
  3. If the taxpayer is claiming the credit for their spouse, answer the question at the top of the worksheet to bring in their data.
  4. To claim the credit for someone who is not related to the taxpayer, complete form TP-1029.AN.A. It must then be signed by a health professional and mailed to Revenu Québec.

Please refer to the TP1 guide (TP-1.G-V) for more information about eligible care receivers and the credit.

Alberta AT4930

The AT4930 form has been updated to the December 2020 version.

TaxFolder Electronic Signatures

TaxFolder is now ready to use! If you have a TaxFolder license, you can send signature requests and ask your clients to upload documents directly from TaxCycle. 

On the TaxCycle website, you will find help topics with detailed instructions for tax preparers using TaxFolder along with instructions and videos to share with your clients. See the TaxFolder help topics.

Preparers who signed up for TaxFolder will receive an email with instructions on how to start using it in their firms. Please read this email thoroughly and follow the instructions carefully. If additional assistance is required, contact TaxCycle support.

Two-Factor Authentication (2FA)

We strongly encourage everyone using TaxFolder to set up two-factor authentication on their TaxCycle Account. Two-factor authentication—or 2FA—provides an extra layer of protection for your TaxCycle Account and TaxFolder client data. When you sign in, you confirm your identity through an authenticator app on your mobile phone or by receiving a unique code via text message or phone call. This additional step protects your clients and firm from unauthorized access to confidential documents.

For step-by-step instructions on configuring and using two-factor authentication, see the Two-Factor Authentication (2FA) help topics.

Customer Requests

  • T3—We added Smart Copy/Paste to the following types of forms: income statements, worksheets, tax and credit forms, filing and authorization forms. See the Smart Copy/Paste help topic to learn how to copy data between forms.
  • T4/T4A—You can now add Address fields to the T4 and T4A slips summaries.
  • Template Editor and Data Monitor—You can now add or substract months to a field code using the addmonth() function. For example, to add two months to the signing date field: {{addmonth(CurrentClient.Info.Filing.SigningDate,2)}}. To subtract three months from the same field: {{addmonth(CurrentClient.Info.Filing.SigningDate,(-3))}}. Unlike the addymd() function, this function has a bias toward the last day of the month, allowing it to handle months of different lengths and leap years. If the date passed to the function is the last day of the month, the date returned will also be the last day of the month. For example, February 29, 2020 plus 1 month will be March 31, 2020, whereas February 28, 2020 plus 1 month will equal March 28, 2020 . 

Resolved Issues

  • T3A Investment income (or loss) may be an incorrect value.
  • Line 20 on Québec Schedule Q (TPQ)
  • T2 T666 (BC), amount c on Schedule A now calculates correctly based on the latest T661.
  • T2 T666 (BC), amount f on Schedule A now calculates from line 515 of the T661.
  • T2SCH8 Class 14.1, subject to 7% CCA rate (for eligible capital property (ECP) immediately before January 1, 2017), no longer calculates CCA when there is either a recapture or terminal loss.
  • T5013 electronic filing of the T1135 now correctly updates the transmission status.