Your Ideas, Our Improvements: A Look Back at TaxCycle in 2024-25

This time of year, we always take a moment to reflect on everything the past tax season brought to TaxCycle. Beyond the expected legislative changes and new services from the Canada Revenue Agency (CRA) and Revenu Québec, what truly stood out were the invaluable contributions from our clients. Your feedback, shared during webinars, on our support lines, or in posts on ProTaxCommunity.com and Dialo-impôt has been absolutely pivotal to TaxCycle’s progress.

In case you didn’t catch every detail in our release notes, here’s a look at some notable improvements you helped us bring to TaxCycle this year. Can you spot your idea?

Significant CRA and Provincial Initiatives

Many CRA changes require additional research and design to implement them well in TaxCycle, and make them available quickly as well as easy-to-use. Worth noting this year are the following:

• T1—Updated the final Canada Carbon Rebate (CCR) payment for April 2025 to reflect the amounts announced by the Minister of Finance on March 22, 2025.
• T2—Updated T2SCH63 Return of Fuel Charge Proceeds to Farmers Tax Credit to reflect the rate of zero for days in 2025, as announced by the Minister of Finance on March 22, 2025. 
• T2—Updated the TaxConstants worksheet and Schedule 346 Nova Scotia Corporation Tax Calculation to reflect the changes to the small-business tax rate and limit introduced in Nova Scotia’s Bill 68.
• T2—Updated T2SCH8, the S8AssetManager and the Motor Vehicle workshee to reflect the 2025 automobile deduction limits and expense benefit rates announced by the Department of Finance on December 30, 2024.
• T1, T2, T3—Updated the TP-21.4.39 Cryptoasset Return form to reflect significant cosmetic changes made by Revenu Québec.

Templates

Based on your feedback, we made several adjustments to our templates to ensure they're more accurate and helpful.

• T1—Added a paragraph to the T1 2024 templates to address the requirement for electronic payment when the TP1 return has more than $10,000 owing. This affects the client, joint and deceased letters.
• T1—Updated the text on the client letter (CLetter and JLetter) to specify the year for the T1 instalment payments.
• T1—Added the Service Canada phone number to the GIS and OAS paragraphs in the client letter (CLetter and JLetter).
• T1—Added new paragraphs about UHT and bare trusts to the 2024 client and joint client letters to confirm that there is no filing obligation.
• T1—Added a paragraph to the client and joint letters to remind business owners that the CRA is transitioning to online mail as the default method of delivering most business correspondence and that they should log in to My Business Account and verify that they have a valid email address on file. This paragraph displays when the return includes an income statement (T2121, T2125, T2042, T1163/64) and the statement contains a business number (BN). 
• T1—Added sample code for T1-ADJ to the English and French T1 Code template, which shows you how to get data from the T1 adjustments table on the T1-ADJ worksheet. See the sample code in the select() function help topic.
• T1—For 2024 client and joint letters, added a condition to the Canada Dental Care Plan section to display text only if the summary shows prior year taxable income.
• T2—Added a paragraph about online mail to the client letter (CLetter) in English and French. 
• T2—Removed a duplicate paragraph for the $10,000 requirement for payments from the client letter. Also removed the “starting in 2024” text.
• T3—Added a conditional paragraph about updating beneficiary information to the client letter (CLetter).
• Template Editor—Added a new Filter dropdown menu to the Templates sidebar, which allows you to refine the template list by template types, TaxCycle modules, language and more.

TaxCycle T1

• As requested by a customer during the November 2024 Ask Us Anything webinar, we've added a new review message that appears when the downloaded Auto-fill my return (AFR) data indicates the CRA has uncashed cheques on file for the client.
• Improved the slip matching for AFR to address differences in the format of issuer names for slips filed through the updated CRA system this year.

TaxCycle T2

• In T2 Auto-fill, when the difference between the downloaded tax instalment amount paid and the amount on line 840 of the T2 jacket is not greater than $0.99, the mismatch review message no longer displays. See the discussion on protaxcommunity.com.
• Added a question about the T3 Bare Trust requirement to the Engagement worksheet in T2 2025.
• Added new questions to the Federal Instalments worksheet to allow preparers to verify whether a corporation’s (and the associated corporations’) estimated taxable income and taxable capital for the current year is nil.

Slips

• Added RepID support to TaxCycle Options and the Engagement worksheet for clients who wish to file using the CRA’s Represent a Client portal.
• Added an option to delete all blank slips when importing client data into TaxCycle, as requested by a customer during our November 2024 Ask Us Anything webinar.

TaxCycle T5013

• TaxCycle now marks the Schedule 130 as “used” when transmitting a blank S130.
• Added a review message and check box to exclude the application of a deemed capital gain under ITA 40(3.1) in cases where a limited partner is an exempt partner who holds an excluded interest.
• Added automatic allocation of capital account amounts for all partners on the S1 Allocation Worksheet (S1WS).

TaxCycle Forms

• Added form RC681 Request to Activate Paper Mail for My Business.
• Added Submit e-Documents support for T2057 and T2059 special elections and returns (SERs) transmissions for individual filers.

Client Manager

• You can now remove a saved Default search from the Quick Searches sidebar by right-clicking on a saved search and selecting Remove as the Default search from the dropdown menu. Once removed, TaxCycle will not apply a saved search to the first search in the Client Manager.

Documentation

We also published and improved the following pages to assist with some commonly asked questions:

• T1198 EFILE
• Deceased Taxpayers and RRSP/RRIF Transfers
• Internet File Transfer (XML) for Slips and Summaries

What About Other Years?

Curious about enhancements in prior years? Check out these news articles:

• Your Ideas Helped Make TaxCycle More Beautiful in 2023–2024
• A Year in Review: TaxCycle Highlights for 2022-23
• You Helped Make TaxCycle More Beautiful in 2021-22
• Your Ideas Made TaxCycle Better (2020-21)
• Look What You’ve Done for TaxCycle This Year (2019-20)