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TaxCycle 9.1.38833.0—CO-17 Update. 2020 T4, T5 and T5018

This release provides a major update to Québec CO-17 returns and rolls over the T4/T4A, T5 and T5018 slips modules to 2020. It also adds new features including enhanced slips summaries, a guaranteed income supplement worksheet and NetFile of adjusted TP1 returns.

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

Release Highlights

Rollover of T4/T4A, T5 and T5018 to 2020

The new modules for TaxCycle T4/T4A, TaxCycle T5 and TaxCycle T5018 allow you to begin data entry for 2020 slips and related Québec RL slips. Please note the following:

  • You can carry forward T4/T4A, T5 and T5018 files from TaxCycle. Carry forward from other software is not yet available.
  • You can use these modules to begin data entry for 2020.
  • The government forms are the 2019 forms updated to include 2020 indexed amounts and budget changes announced or estimated based on the information we have at this time. A review message appears on the year-end date field and in a bulletin at the top of the forms to remind you of this.
  • These modules permit CRA Internet File Transfer (XML) and transmission of RL slip to Revenu Québec.

New! Enhanced Slips Summaries

This release adds support for customizing the display and sorting of columns on the slips summary in 2020 T4, T4A, T4PS, T4A-RCA, T5, and T5018, as well as the T4 Reconciliation summary. It also improves the performance when displaying many slips on the summary.

  1. When you scroll through the list of slips, the column headings stay fixed at the top of the table.
  2. Click on a column heading to perform an ascending sort (from A to Z, or smallest number to largest). Click again to perform a descending sort (from Z to A, or largest number to smallest).
  3. Drag and drop a column heading to move the column to a different position.
    Screen capture of T4 Slip Summary
  4. Right-click on a column heading and select Hide this column to remove a column from the summary.
  5. Right-click on a column heading and select Manage columns to add or remove columns from the summary and change the order in which columns appear.
    Screen capture of right-click on column heading
  6. Hover over a cell with a review message to read the message.
  7. Click in a cell with black text to edit an amount or value. The change flows back to the recipient’s slip.
    Screen capture of review message on slip summary
  8. Right-click on a row and select Delete (or press Ctrl+Delete) to delete a slip.
    Screen capture of right-click to delete a slip
  9. Scroll to the end of the list to enter a new slip in the blank row at the bottom of the table.
    Screen capture of field for creating a new slip

Major CO-17 Update

Notable changes

  • Amended CO-17 returns can now be electronically filed. This new feature is available to CO-17 returns with taxation years starting on or after January 1, 2017. To amend a CO-17 return, indicate that the return is being amended in the Québec section of the Info worksheet.
  • New Québec resource forms and SR&ED forms are now available.
  • To comply with the mandatory requirement by Revenu Québec, the form header (Corporation name, NEQ and Identification) on all CO-17 forms was moved to the bottom of the form.

New Forms

  • CO-17.B.1 (QC71) Amount to be included in the income of a corporation that is a member of a single-tier partnership. This form calculates from the federal Schedule 71.
  • CO-17.B.2 (QC72) Amount to be included in the income of a corporation that is a member of a multi-tier partnership. This form calculates from the federal Schedule 72.
  • CO-17.B (QC73) Adjustment of income from one or more partnerships. CO-17.B calculated based on CO-17.B.1 and CO-17.B.2.
  • CO-400 (QC12) Deduction related to resources. This form calculates from the federal Schedule 12.
  • CO-771.1.3.AJ Adjusted business limit.
    • Complete this form if the corporation’s tax year begins after 2018 and has Adjusted Aggregate Investment Income (AAII).
    • Section 2 is expandable and must be completed for the reporting corporation as well as any associated corporations.
    • A new section has been added to the CGI form (“CO-771.1.3.AJ”) to allow the entry of section 2.2 for associated corporations. The row for the reporting corporation (first row) is calculated from S7WS. Complete the row in the table for each associated corporation. The data in this table is shared with section 2 of CO-771.1.3.AJ.
  • CO-1029.8.35 Tax Credit for Québec Film Productions. In Section 2, if box 10f is selected, answer the question in the box below for a credit rate increase. This box is on-screen only.
  • CO-1029.8.36.EM Tax Credit Relating to Resources.
  • CO-1029.8.36.FO Employee training tax credit for small and medium-sized businesses.
    • This is a multi-copy form.
    • Section 2 is expandable and allows you to enter multiple employee information.
    • In section 2.5, if the on-screen only question is checked, lines 23 and 24 will calculate.
  • RD-222 Deduction Respecting Scientific Research and Experimental Development Expenditures.
    • This form calculates from T661.
    • Sections 5, 6 and 7 are expandable to allow multiple entries.
  • RD-1029.7 Tax credit for salaries and wages (R&D).
    • Line 156a in section 4.1 is calculated from the CGI form CO-17 section new column “Total assets for the previous tax year” for the reporting corporation; if a partnership % is entered in section 6.1, this line becomes an edit field.
    • Line 213 in section 7.1.1 is calculated from the CGI form CO-17 section total of the new column “Total assets for the previous tax year”.
  • RD-1029.7.8 Agreement between associated corporations Regarding the Expenditure Limit. This form must be prepared to allocate the expenditure limit for the following two tax credits:
    1. The tax credits for salaries and wages (R&D) (RD-1029.7).
    2. The tax credit for university research or research carried out by a public research centre or a research consortium (RD-1029.8.6).
    In order to support the allocation calculations for the above two tax credits, two versions of the RD-1029.7.8 are created as follows: RD102978RD (for RD-1029.7) and RD102978University (for RD-1029.8.6). On the CGI form, a new section has been added to allow the expenditure allocation.
  • RD-1029.8.6 Tax credit for university research or research carried out by a public research centre or a research consortium.
    • This is a multi-copy form to allow the credits to be claimed by the corporation directly or as a member of a partnership.
    • Section 2 is expandable to allow multiple entry of research contracts.
    • If more than 1 entry made in section 2, a worksheet will print containing second and subsequent section 2 entries.

Updated Forms

  • CO-17 Jacket—New question 19a is answered Yes when federal Schedule 88 is complete.
  • COR-17.W—Minor update.
  • CO-130.A—The entire form has been revamped to accommodate the CCA calculations of Accelerated Investment Incentive Property. The new CCA table now mirrors the federal Schedule 8 which was updated in a previous release.
  • CO-771—New question 06a has been added on page 1 and is calculated to “Yes” if there are associated corporations with Adjusted Aggregate Investment Income (AAII) in the CGI form (CO-771.1.3.AJ section).
  • CO-771.R.3—Added new questions 06a, 06b, 07a and 07b.
  • CO-771.2.1.2—Minor update.
  • CO-1029.8.33.13—Minor update.
  • CO17SpecialTax—New codes added:
    • 95 Special tax in respect of the refundable tax credit for SMEs promoting the job retention of experienced workers.
    • 96 Special tax in respect of the tax credit to support the written press.
  • CO17Deductions—New code added:
    • 18 Deduction for the commercialization of innovations in Québec
  • CO17Refundable, QC1Deduction, QC1Addition—New codes added:
    • 104 Tax credit for the training of workers in SMEs.
    • 105 Credit for the digital transformation of written press businesses.
    • 106 Tax credit for the production of pyrolytic oil in Québec
    • 107 Refundable tax credit for SMEs promoting the job retention of experienced workers.
    • 108 Tax credit to support the written press.
    • 109 Tax credit for investment and innovation.
    • 110 Tax credit for SMBs that employ persons with a severely limited capacity for employment
    • 111 Synergy capital tax credit.
  • CO17SpecialTax—New codes added:
    • 97 Special tax relating to the tax credit for investment and innovation.
    • 98 Special tax relating to the tax credit for SMBs that employ persons with a severely limited capacity for employment.
    • 100 Special tax relating to the deduction for the commercialization of innovations in Québec
    • 101 Special tax relating to the synergy capital tax credit.
  • CO-17.A.1 (QC1) line 129a1 to 129ki—New codes added:
    • 05 Additional deduction for the depreciation of a property used as part of manufacturing or processing or consisting of computer equipment.
    • 06 Additional deduction for the depreciation of property used as part of manufacturing or processing activities or consisting of computer equipment.

AT4930 (AT1 Consent Form)

In order to reduce the necessity for taxpayers and tax preparers to meet in person, Alberta Tax and Revenue Administration (TRA) will recognize electronic signatures on the AT4930 Alberta Consent Form. You can also send the form to your clients for electronic signature using DocuSign® from TaxCycle.

Updates to DocuSign® Electronic Signatures

We added support for DocuSign® electronic signatures to the following forms:

  • T183, TP1000 and T1135 in TaxCycle T1 2016, 2017 and 2018
  • AT4930 Alberta Consent Form in TaxCycle T2

In templates, we added code, text and properties to support electronic signatures to:

  • 2019 T5013 Engagement Letter (ELetter)
  • 2019 T1 Adjustment Cover Email (T1ADJEmail)
  • 2019 Client Copy Cover Email (ClientCopyEmail)
  • 2019 AT4930 Cover Email (AT4930Email)

The following templates were added or updated to support e-signatures in 2016, 2017 and 2018 T1 returns:

  • Adobe PDF Signature Cover Email (AdobeSignatureEmail)
  • E-Signature Cover Email (ESignatureEmail)
  • T183 Cover Email (T183CoverEmail)
  • TP1000 Cover Email (TP1000CoverEmail)
  • T1 Adjustment Cover Email (T1ADJEmail)

New! Guaranteed Income Supplement (GIS)

We added a new Guaranteed Income Supplement (GIS) worksheet to TaxCycle T1 2019. This worksheet estimates the maximum GIS entitlement for low-income pensioners or those who qualify for an allowance based on the applicable T1 income. Estimates are based on the current GIS tables which are valid to June 30, 2020.

The form was also added to the Client Copy print set for 2019. The client letter template will be revised to use values from this form after the T1 filing deadline.

New! NetFile of Adjusted TP1 Returns

Revenu Québec approved TaxCycle to file adjustments to TP1 returns through NetFile. The process is similar to filing the initial return through NetFile Québec, with an additional optional step for uploading supporting documents when required. Read the TP1 NetFile Québec for Adjusted Returns help topic for full instructions.

Forms Added to TaxCycle Forms

The following forms have been added to this module.

  • NR7-R Application for Refund Part XIII Tax Withheld.
  • R105 Regulation 105 Waiver Application.

Changes to T5013

  • T5013—Resolved rounding conflict related to partnership percentage on the Allocation worksheet and slips.
  • T5013—Added the ability to designate partnerships that are a Limited Liability Partnership (LLP) as either a “full shield” or “partial shield” to allow At-Risk calculations in the case of a “full-shield” LLP partnership.
  • T5013—Fixed amounts not flowing to RL-15 slips if partnership is Limited Liability Partnership (LLP).

Customer Requests

  • T1—TaxCycle now supports negative RRSP limits for 2019 and 2020.
  • T1—TP-1026 line 32 amount now adjusts to exclude the effect of pension splitting between spouses.

Resolved Issues

  • T1—T1032, line 68040 (amount to transfer to spouse is overstated)
  • T1—Tuition amount incorrectly calculating on ONS11MJ or SKS11MJ in a multi-jurisdiction return when the taxpayer is not a resident of Ontario or Saskatchewan.
  • T1—Revised the calculation of the maximum credit allowed on TP1 Schedule J.
  • T1—Completed calculations on TP-726.7 work chart 2 for 2018, 2019 and QFFP.
  • T2—Added support for carrying forward the Characterization of Income section on the S71 and S72.