T4A:
Selecting Box 28 on the T4A form to be reported on a T2125 as professional income does not work properly. Instead it adds it to Part I of the revenue section (business income) rather than Part 2 Professional income.
Schedule 2 Spouse Income section:
When preparing a return for a taxpayer, without preparing the return for the spouse, the spouse’s income is entered on Schedule 2.
Problems:
Schedule 2 does not accept negative values for self employment losses;
the T1 jacket question “Was your spouse self-employed in the year” does not change to Yes even if positive self-employment income is entered on Schedule 2.
T4 CPP over-contribution diagnostic for taxpayers who turn 70 in 2014:
The CPP calculation for taxpayers turning 70 years of age in 2014 on Schedule 8 is correct.
Problem:
On the T4 screen the diagnostic indicates a CPP overpayment based on the standard CPP calculation (pensionable - $3,500 x 4.95%) rather than based on the Schedule 8 calculation. The diagnostic misleads the preparer into looking for a CPP overpayment based on the T4 screen.
A better diagnostic on the T4 screen might be a warning that taxpayer turned 70 and therefore check Schedule 8.
Thanks, Matthew, for the information. I have logged these for 2015 as some of these have more far reaching effects.
Regarding the Spouse self-employed question on the jacket, I am able to get it checked by entering positive amounts for lines 135 to 143 on the S2 worksheet.
Thanks. I Checked back with the person in our office who had the problem with the Schedule 2. I think the self employment question was a problem because the loss for the year was not able to be entered, to the box did not get checked. (We usually do returns for both spouses, so this was a bit of an anomaly for our office as it is, so we probably won’t run in to it again until next year.)
Looks like this was a 2015 post, but we still experienced issues with the T4A transfer to the T2125 in 2016 T1 season.
One issue I beleive is un-resolved in the 2017 T1 module relates to professional sole-proprietors. We have quite a few who receive T4A’s with box 28 income, and the transfer always appears to populate under business income section in the T2125:
When the T2125 is checked to indicate professional income, this transferred T4A income is ignored. It looks like in the 2017 module there’s a review message to encourage us to switch the T2125 form to business/commission, but we need a way to get box 28 income populating in the professional section of the T2125 without an override. Is there any way to accomplish this that we’re missing?
Hmmm, @traceychaves is there anything else you need to do to accomplish that switch? When I click the different options up at the top right of the form to change “the type of business activity” the income stays put under part 1 business.
Is it box 28 from a T4A that is flowing through for you? That’s the one we’re having issues with (in the 2017 T1 module similar to previous years).
