Bug Report: T2209 on 2021 Tax Return

Bug Reports
1

I’m playing with some foreign income scenarios to better understand how Canada applies foreign tax credits between the different categories of income (employment, business, investment, capital gains).
I’m also looking at how the surtax on non-Canadian income is applied. In the process, I discovered what looks like a BUG on the T2209 form, as the numbers generated in Box 6 (and transferred to Box 7 to 10) don’t look right.

Here’s the scenario that I created on this 2021 tax return:
Foreign Tab:

  • Business Income: 1,000,000 Mexican Pesos = $61,810 CDN
  • Foreign Tax Paid: 150,000 Mexican Pesos = $ 9,271.50 CDN

This is the ONLY income I have on this tax return.
I have the Taxpayer setup with a birthdate of 1975, Single, Canadian Status, declaring “Non-Resident” status. No prorations used, so claiming non-residency for the entire year.

Here is a snapshot of the T2209 showing the bizzare numbers generated for Line 6
of $ 234,497,479.24

image
image1163×366 54.8 KB

I recreated this same scenario on a 2020 tax return and it too generates these ridiculous numbers in box 6.

Line 6 states the Federal surtax on income earned outside Canada:

  • amount from Line 10 of Part 2 on form T2203 = $ 2,701.24
    or,
  • Line 42900 = $ 7,903.75 x 48% = $3,793.80

Where does the $ 234,497,479.24 figure come from ??? Is this accurate?

2

i just tried it with m ine and it does not have that problem

Screenshot (17)
Screenshot (17)1915×1080 274 KB

3

have you updated to the newest build? Also in this scenario you are claiming non resident so there is no income from canada so no need to file

4

Thanks for the reply, Kevin …

I updated TaxCycle but still generate the error. I traced it to the info tab when both the Province of Residence on Dec. 31, 2021 is set to Non-Resident, and also the Residency Status (right hand column) is also set to Non-Resident. As long as I maintain a Canadian province of residence on Dec. 31, 2021, then there is no problem (except of course that you can’t be a resident and non-resident at the same time, LOL).

Yes, I recognize your point that in this scenario there is no income from Canada so no need to file.
I will be adding Canadian based income, but in this exercise, I was breaking things down into simple steps to fully analyze the calculations. And thus the discovery of these bizarre numbers.

5

An FYI for this topic. Even though this scenario should never happen, I have rearranged the calc of line 6 on the T2209 for 2022 to not produce this giant number. It was missing a division by net income.