Tried to e-file a client’s T1 today and got the following error message. They do have a T2125 with an ON address, but live in AB. Anyone seen this before?
And what is the “SFD” they are referring to?
"The postal code entered on the SFD record is not located in the same province or territory as you resided in on December 31. However, there is no indication that your income is subject to tax in more than one jurisdiction. Please review the postal code entered on the SFD or indicate your income is subject to tax in more than one jurisdiction."
@kevin.mcleod – SFD means “Selected Financial Data” from a business statement (T2125, T776, T2042, etc, etc). So in your case, it’s referring to your T2125.
Not sure how to indicate income is subject to tax in more than jurisdiction?
Any help with that?
I would start with form T2203, which allows you to allocate your income across multiple jurisdictions…
Thanks Cameron. We did try that, but it won’t take a negative # as is a small loss on the T2125 (final year).
Will keep trying to figure something out.
maybe your postal code doesn’t match province
also, t2125 address and living address probably don’t match…if it is a home based business, just change the address on the t2125 to match address on info page
I have found that, when you have a business loss, with the exception of a business located in Quebec and the taxpayer resident in another province, there is little benefit to filing multiple jurisdiction returns. The loss is registered with the Federal government anyway and you don’t need the complication of a M-J.
Just fix the address to be the same as the info screen (Drop down address on the T2125), then recalculate, check that the T183 remains the same, and file.
Then put a carry forward note on the business address to restore the address for next year.
Yes, thanks Tim. That is what we had to do in the end.
Was the last year for the T2125 anyway, so shouldn’t be an issue carrying forward.
It’s not a matter of being “a benefit” by filing the MJ. It’s a matter of the government sending the appropriate amount of tax to the correct province. By changing the address to just be the Dec 31 address, you are cheating the old province out of their fair share.
Granted this one is a loss, so in fact you are cheating the new province LOL But you get my point.
By selecting the correct Provinces and business form on the T2203, TaxCycle did all the work for me, so I think you may be missing something.