TaxCycle 9.2.39684.0—Major T2 Update
Revisions Since Initial Release
The automatic update (version 9.2.39565.0, released on June 29, 2020) added:
- The new 8% Alberta AT1 corporate tax rate, announced June 29, 2020.
- Updating the service version number for transmitting Québec CO-17 returns in the 2020 T2 module to prevent error code 13965.
- Changing column A3 on Québec CO-17 Schedule 21 from an edit field to a calculated field.
- A fix to include the CInvoice template in the 2020 T2 module.
On July 10, 2020, we released a further update to resolve the following issues:
On July 15, 2020, we released a further update with the following changes:
- Resolution to Known Issue: T106, T1134 and T1135 Transmission Error Code 400
- A new column for predecessor/subsidiary corporation on the CDA Previous Year Worksheet and Election (T2054). For amalgamations and wind-ups after July 13, 1990, enter the amounts of all the CDA components of the predecessor corporation in this new column to calculate the combined CDA components before the amalgamation.
This release of TaxCycle T2 and AT1 extends the supported tax year ends to October 31, 2020. It also includes a preview of 2020 T1/TP1 and rollover of T3/TP-646, NR4 and RL to 2020.
Get this version as an automatic update, full download from our website or a free trial. An automatic update will follow in a few days. (To deploy auto-update files from your network, see the Auto-Update Files page.)
T2 and AT1 Filing Date Extension
TaxCycle supports the preparation and filing of federal T2 and Alberta AT1 corporate tax returns with tax year ends up until October 31, 2020.
Due to the COVID-19 pandemic, the Canada Revenue Agency (CRA) has limited the revisions to this version of the T2 Corporate Tax Return and forms (see below). We will continue to update TaxCycle T2 with announcements and budget changes as they arise.
T2 File Conversion Message
When you open an in-progress T2 return, TaxCycle may prompt you to convert it to the new module. This message appears when the status of the T2 return you are working on is other than Completed and the corporation’s tax year starts on or after January 1, 2018.
- Click the Convert button or link to convert to the newer module:
- Save the new return. You can choose to delete the old file (checked by default) or save (clear the check mark) at the bottom of the workflow dialog box. Deleting the files means that it will no longer appear in the Client Manager or in the recent files list.
- The new file has the file extension .2020T2 and supports returns up to October 31, 2020. To learn more about T2 file name extensions, read the T2 File Name Extensions help topic.
New and Updated T2 Forms
- Added line 798 to support the Canadian journalism labour tax credit calculated on the new Schedule 58.
New Schedule 58 (Canadian Journalism Labour Tax Credit)
- As announced in the 2019 Federal Budget, a “qualifying journalism organization” (defined under subsection 248(1) under the Income Tax Act) can now claim this refundable tax credit.
- If a partnership allocates the credit and the corporation does not earn the tax credit directly, select the on-screen question and leave Part 1 of the form blank. Then, enter the allocated amount on line 130 in Part 3 of the form.
- Effective for principal photography that begins after May 31, 2020, a new Manitoba Production Company Bonus of 8% boosts the current 30% cost-of-production credit under the Film and Video Production Tax Credit, increasing the total cost-of-production credit up to 38%.
- If the date on line 204 (date the principal photography began) is after May 31, 2020, the additional 8% applies to the calculation at line 875.
- TaxCycle now makes Schedule 548 accessible for corporations with a jurisdiction outside Canada. Previously, this form was only accessible in TaxCycle T2 if the corporate jurisdiction was Ontario.
- This form is for non-resident corporations incorporated, continued, or amalgamated outside Canada with a license under the Ontario Extra-Provincial Corporations Act to carry on business in Ontario.
- To make the form visible, select Outside Canada as the jurisdiction for the corporation in the Residency section, on the Info worksheet, and answer Yes to the question about completing the S548 in the same section on the Info worksheet.
The CRA plans to update the T2 AGRI EFILE system on June 22, 2020, to allow filing of AgriStability returns with tax year ends up to December 31, 2019. TaxCycle T2 is ready for filing these AgriStability returns when the CRA makes this change.
Revisions to T2 Authorization Forms (RC59)
We have renamed the RC59OnlineConsent and RC59XCancel to AuthRepBus and AuthRepBusCancel. Complete these new worksheets to request or cancel online authorization for your corporate clients. Your client must sign and date this form before you can submit the request electronically. You can request an electronic signature on this form. To learn how to file authorization requests and cancellations from TaxCycle using these forms, please read the updated Business Authorization/Cancellation Request (formerly RC59 and RC59X) help topic.
In addition, the CRA no longer accepts forms RC59 (Business Consent for Offline Access) and RC59X (Cancel Business Consent or Delegated Authority). The CRA has replaced these forms with AUT-01 (Authorize a Representative for Access by Phone and Mail) and AUT-01X (Cancel Authorization for a Representative), which we include in TaxCycle Forms.
New Billing and Invoicing in TaxCycle T2
TaxCycle T2 now contains the same billing and invoicing features as TaxCycle T1. Invoice your T2 clients directly from TaxCycle or export to QuickBooks®. To get started:
- If you are not already using T1 invoicing, review your Invoice options to set up sales tax, invoice numbers and QuickBooks® export.
- Go to the Price page in T2 options and set up your price list for corporate returns.
- When you are ready to invoice a client for a T2 return, open the Billing worksheet and review the charges. TaxCycle completes this worksheet based on your invoice and price options.
- Open the Client Invoice (CInvoice) template to print or PDF the invoice for your client. When you print the invoice, TaxCycle inserts the invoice number on the Billing worksheet and locks the data. This template uses the same letterhead, signature and logo configured for the T2 client letter.
- If you configured TaxCycle to QuickBooks® invoicing, click the link at the top of the Billing worksheet to send the invoice to QuickBooks®.
Updated Alberta AT1 Forms
AT1 Schedule 13 (Capital Cost Allowance)
- Updated based on the latest version received from Alberta Finance.
- In the Authorization Type drop-down (screen only), we added two selections to allow cancelling and requesting online or offline access at the same time.
- T2 module options also includes these new options for AT4930 default values.
Preview 2020 T1/TP1 Preview Rates and Forms
The new TaxCycle T1/TP1 2020 module includes preview forms, rates and calculations for 2020 personal tax returns. Use this module for planning and evaluation purposes only.
The government forms you see in the TaxCycle T1/TP1 2020 module are the 2019 forms updated to include 2020 indexed amounts announced or estimated, based on the information we have at this time and budget changes.
What you need to know:
- You can carry forward 2019 T1/TP1 returns from TaxCycle, ProFile®, Taxprep® and DT Max®. All carry forward conversions are currently under review and will be updated before the next tax season. We do not recommend batch carryforward at this time.
- All forms show a Preview watermark on screen and when printing.
- Files you create now will continue to work after the module receives certification from the CRA. EFILE is not available for 2020 tax returns until February 2021.
- The CRA has not yet certified TaxCycle T1/TP1 2020 for electronic or paper filing. However, you may use it to prepare and file a deceased taxpayer’s 2020 return.
- If you have purchased a 2020 TaxCycle license, you may prepare a 2020 T1 return for a deceased taxpayer by entering the date of death on the Info form or a 2020 T1 pre-bankruptcy return by entering the date of bankruptcy and selecting Pre-bankruptcy on the Info worksheet. This removes the Preview watermark, allowing you to print and paper file the T1Condensed. Note that the bar code will not show on the form.
To learn how to create planning files, review the following help topics:
T1 Tax Changes
- A new section at the top of the Credits worksheet shows the calculation of the additional basic personal amount for individuals with net income not exceeding the top tax bracket threshold, reduced between the third and fourth threshold. This amount also serves as the base amount for the spouse or common-law and eligible dependant amounts.
- The 2020 preview of BC428 calculates the new British Columbia tax bracket, 20.5% on taxable income exceeding $220,000, and the donations credit eligible for individuals taxed at this rate.
Rollover of T3/TP-646, NR4 and RL to 2020
The new modules for TaxCycle T3/TP-646, TaxCycle NR4 and TaxCycle RL to allow you to begin data entry for 2020 slips and related Québec RL slips. Please note the following:
- You can carry forward files from TaxCycle. All carry forward conversions are currently under review and will be updated before next tax season. We do not recommend batch carryforward at this time.
- 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.
- Where applicable, these modules permit CRA Internet File Transfer (XML) and transmission of RL slips to Revenu Québec.
- Important! Revenu Québec currently only accepts RL-31 for the 2019 tax year. Because of this, TaxCycle RL 2020 will only produce 2019 tax year files. (You can, however, produce 2020 RL-24 slips from the same 2020 module.)
New! T3P, T2000 and T244 Added to TaxCycle T3
- T3P Employees' Pension Plan Income Tax Return. File this return electronically with Internet File Transfer (XML), similarly to the T3RET.
- T2000 Calculation of Tax on Agreements to Acquire Shares (section 207.1(5) of the Income Tax Act).
- File this return electronically with Internet File Transfer (XML), similarly to the T3RET.
- T244 Registered Pension Plan Annual Information Return. Print and file this form on paper.
T3 Tax Changes
The 2020 T3 module adds the new tax rate for British Columbia of 20.5% and the donations credits eligible for trusts taxed at this rate. These apply to:
- Taxable income exceeding $220,000, for Graduated Rate Estates (GRE) or Qualified Disability Trusts (QDT), and
- All taxable income for all other types of trusts.
COVID-19 Wage Subsidy Worksheet in TaxCycle T4
This release adds the Wage Subsidy worksheet to TaxCycle T4. Use this worksheet to calculate the CRA 10% Temporary Wage Subsidy for Employers to reduce the required payroll deductions remitted to the CRA.
Eligible employers (individuals (excluding trusts), certain partnerships, non-profit organizations, registered charities, or Canadian-controlled private corporations) who pay salary, wages, or taxable benefits to employees, between March 18, 2020, and June 19, 2020, can reduce payroll remittances of federal, provincial, or territorial income tax by the amount of the subsidy. See the CRA page FAQ – Temporary wage subsidy for employers: CRA and COVID-19 for more information.
New! Forms Added to TaxCycle Forms
- NR301 Declaration of eligibility for benefits (reduced tax) under a tax treaty for a non-resident person
- NR302 Declaration of eligibility for benefits (reduced tax) under a tax treaty for a partnership with non-resident partners
- NR303 Declaration of eligibility for benefits (reduced tax) under a tax treaty for a hybrid entity
Competitor Carryforwards 2019 to 2020
This version of TaxCycle adds the conversion of files from the following competitors. (This is in addition to the conversions from prior years listed on the Carry Forward Prior Year Returns help topic.)
- ProFile® T1/TP1, T2, T3 2019
- Taxprep® T1/TP1, T2, T3 2019
- Cantax® T1, T2 2019
- DT Max® T1/TP1, T2, T3 2019
Important! All carry forwards are currently under review and will be updated before the next tax season. We do not recommend batch carryforward at this time.
- New Lock Form and Unlock Form buttons on the Security menu allow you to lock and unlock the data on the T1 Planner worksheet. This means you can create copy of the T1 Planner worksheet, plan a scenario, then lock the data.
- In TaxCycle T2, we have simplified the list of Views at the top of the Review sidebar. Items appear in groups based on type, and the types under the Transmission group only show when the transmission is required for the return. This menu also includes a new view for format overrides of numbers like the business number or postal code.
- On the Dialog page in TaxCycle Options, we added an option to always open the “Top Hit” when pressing the Enter key (checked by default). When enabled, TaxCycle ignores the result highlighted by the cursor hovering in the Fast Find box and always opens the Top Hit.
- On the Dialog page in TaxCycle Options, we removed the option to use the “legacy” Fast Find dialog box. If you had this checked in the past, you will no longer see the old look and behaviour of Fast Find.
- Excluded slips now use a distinct icon to make them more identifiable in the Prepare sidebar.
- T1—Updated the text in the closing of the English Adobe PDF Signature Cover Email (AdobeSignatureEmail) template to say “If you have any questions” rather than “If you have any question.”
- T1—In the 2019 and 2020 T1 client and joint client letters (CLetter and JLetter), updated the paragraph about Guaranteed Income Supplement (GIS) to use values from the GIS worksheet.