I filed a tax return for a client who payed $87.57 in enhanced CPP. TaxCycle calculated that line 22215 dedcution as $737.57 ($650 + 87.57) but the CRA assessed them only allowing for the $650. I also ran the client through Cantax as I have access to it as welll and that program came up with the same $737.57 deduction. Anyone else dealing with an assessment from the CRA only allowing the $650 deduction for CPP?
I had the same issue for some clients but not others. I’m assuming CRA processing issue. I’m filing a NOO for them.
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Perhaps one thing to check:
Check your T4 entry for box 16A
Make sure that both Box 16 and Box 16A have exactly the correct amounts in them.
(Potential for causing Schedule 8/RC381 / Line 22215 errors)
I had a tier 2 CPP issue with a return I e-filed for a deceased client who passed away in November 2024. The T4 Box 16A from my client’s employer was issued using the full $188.00 value instead of prorating it to only 11 months which equals $172.33. As such, I received an e-file error because Lines 50340 + 50341 showed $15.67 more Lines 22215 + 30800 instead of being equal.
I downloaded two tax software programs off the net to see how they handled it. One program agreed with TaxCycle in claiming $765.53 on Line 22215. The other software didn’t claim the T4 Box 16A amount, and only reported $593.20 on Line 22215.
I phoned the e-file helpdesk and they agreed with the suggestion to decrease T4 Box 16A to the prorated amount of $172.33, and to e-file with Line 22215 = $765.53.
The return successfully e-filed, however the Assessment Details showed that CRA changed Line 22215 to show $593.20, and assessed my client additional tax owing from what was filed. Seems that even though my client contributed extra to the Tier 2 pension, CRA’s Notice of Assessment ignored it. Don’t have an explanation why.