I’m not sure whether this is a TaxCycle AFR issue or whether it is a Canada Revenue Agency issue.
I have a client who has a $278 Canada Training Credit Limit based on his 2020 T1 Return prepared with TaxCycle. The amount calculated by TaxCycle last year (and carried forward to his 2021 T1) matches what is mentioned on his 2020 Notice of Assessment. This same amount of $278.00 appears as a balance when I check his file using Represent a Client.
When I downloaded his information via AFR the Canada Training Credit shows up as zero in the AFR area.
If AFR is not pulling in the Canada Training Credit it might be something that requires further investigation.
See below screenshots;
Another person reported a similar case to us yesterday; AFR is returning a limit of zero but Represent a client clearly showed a positive balance.
I sent our AFR contacts at CRA a note last night asking if they were aware of this issue but have not heard back yet. Where this is a new addition to AFR, it could be early database jitters.
I was processing a return yesterday where I had 3 different Canada Training Credit (CTC) Limits (gotta love this CRA confusion, ).
- AFR = $0.00
- Notice of Assessments = $500.00
- Client Summary = $750.00
We adjusted 2019’s return last year AFTER we had received the NOA from the 2020 return. BOTH the 2019 Notice of Reassessment and the 2020 NOA show $500 for the CTC credit next year.
However, I think the Client Summary is the accurate one = $750 since my client hasn’t applied the credit to any previous returns, has met the criteria of income > $10K and < $147K, is Canadian, has filed past returns, and is over 26 and under 65 yrs of age. I’ll be applying this value on her 2021 return, especially because she has tuition this year and can benefit from the deduction.
At $250 per year, then
- 2019 = $250;
- 2020 = $500;
- 2021 = $750
Our AFR contacts at CRA just replied that they have disabled the inclusion of the Canada Training Limit in AFR due to the unreliability of the data that is being gathered. They are working on it.
In the meantime, your most reliable source of the correct limit amount is the 2020 Notice of assessment.
That would imply that I should be claiming $500 from the NOA vs the $750 from the Client Summary (in my example above). I guess we can always adjust the return later if required, or if she still has tuition fees next year, we claim the balance then.
It is impossible to have $750 as a limit for 2021 which confirms the unreliable nature of what you see on Represent a client (RAC).
The credit began in 2020 with a possible limit of $250 if they met the conditions on their 2019 return. They would have added another 250 for 2021 if they met the conditions on their 2020 return and did not use any of their 2020 limit.
Upon transmission through EFILE, CRA validates the credit claimed against the limit they have in their database which they would have built from the Notices of assessment, not the same that feeds RAC and AFR apparently.
Thanks for providing clarity, Allen. I appreciate the reminder that the program started in 2020 based on conditions met in 2019. Makes total sense. Hopefully CRA will get their act together and provide consistency and accuracy in their reporting.