My client filed her taxes herself and forgot to include her business income in her return. Now I need to adjust her T1, but I’ve never done this before. What’s the best way to handle this? Any tips or advice would be greatly appreciated!
You will need to recreate the return how it was done by your client and then go to Tools to create an “As filed” snapshot.
Then start making the change you want and then follow the instructions in the link below.
ReFILE and T1-ADJ - TaxCycle
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Thank you!
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However you can’t Re-File unless you prepared and filed the original. You’ll have to mail the T1Adj.
@nick
I don’t believe you are correct. I have REFILED many returns for clients whose initial returns were filed elsewhere. Can you provide support for your statement? Such as an ITA reference or a link to the EFILE rule?
I have tried in the past to electronically file/re-file a T1 ADJ for clients who had their returns done else where. I was unsuccessful and was told,I think by Tax Cycle that if I didn’t file the original, I couldn’t refile. I don’t think it was an ITA issue, more probably an e-file issue. Maybe this has changed.
Like @Nezzer, I too have successfully re-filed adjustments using TaxCycle for clients whose initial returns were Netfiled by someone else. The trick is that the return needs to be reproduced so that it matches pretty closely with what was originally filed. I’ll use AFR to pull in tax slips so that I don’t have to recode them manually, and I’ll compare with the CRA Assessment Details (Proof of Income Statement) for that year to match my version with CRA’s version. CRA truncates data so there may be some differences however I usually leave my version as is without making it perfectly match CRA’s truncated version.
Once I have a close enough match, then I manually create a snapshot (Tools menu), and then proceed with the required adjustments that need to be made. Taxcycle prompts to create a T1-Adj and when more changes are added, to update the T1-Adj. Once all changes are made, print the required docs, have the client sign the T183R, and then Refile the return. As long as the return was previously Netfiled or e-filed, and you can reasonably reproduce the Proof of Income statement before you create the Snapshot, it should work.
The only returns I haven’t been able to REFILE are those that were originally PAPER filed. The EFILE system won’t allow it. It “knows”.
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OK - good to know. Don’t know what happened for me before. Thanks.
The CRA ReFILE for EFILE page was recently updated. It stipulates, among other things, that an EFILE service provider can use ReFILE if “your client first filed their return online”.
This is also consistent with our guidance from CRA which says that ReFILE can be used regardless of the software used to transmit the original return, provided all the other conditions for ReFILE are met.
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Hi @kozakworld , I am presently looking to adjust a 2023 T1 Return, but it was previously eFILED through my bookeeper, who is no longer available, and I canNOT get access to the Tax File.
I bought a 2023 TurboTax Desktop Home & Business product, in an attempt to REFILE instead of the Paper T1-ADJ, but not sure how to REFILE on TurboTax, if there is no REFILE Option on, since I didn’t originally File.
I need to add a T4A for Self-Employment Business Revenue.
I read through your posts, and several other on recreating the T1 Return based on the NOA, and pull all slips through “Auto Fill My Return”, and I am guessing making adjustment to match the Amount Owning or Refund Amount.
The tough part I am having is, once I create the T1 Return which matches the NOA Amount Owning, how do I NETFILE, without actually NETFILING to the CRA.
My apologies for the long post, and newby questions, its my first time usinh Certified Tax Software, and first time doing this type of thing.
Thank you
As you are using Turbotax, should post this on the Turbotax forum… However, do yourself a favour, and just enter it as ‘change my return’ on the CRA Represent a Client.
The TurboTax forum has not explained this process.
Would like to use the REFILE Option
@galtinvests, my thoughts are the same as @BertMulderCGA’s reply.
This is a TaxCycle software forum, so most of us here don’t use TurboTax, thus cannot advise on that software. If you can’t find the answer already posted on a TurboTax forum, you will have to post your question there and wait for someone to answer you if you choose to use that software’s Re-File option.
In your situation to add one tax slip, your easiest solution is to login into your “My Account for individuals” and use the “Change My return” option to add your slip. (As an individual doing the adjustment on your own return, you won’t have access to the Represent a Client service as Bert suggested).
I trust that in your attempt to recreate your tax return based on the CRA Assessment Details (Proof of Income), that you’ve verified that this slip has not already been reported (ie: no CRA Notice of Reassessments have been issued by CRA to add this additional income).
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For anyone else that is interested, we recently published a detailed help topic about this scenario on the TaxCycle website:
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@riyam.alniaimi I don’t think that is what @galtinvests was asking, so your linked article does not apply. I believe @galtinvests is not registered EFILER. Without an EFILE number and password, he cannot use REFILE. That is why he wants to use Netfile.
I don’t know if Netfile can do T1 adjustments. Years ago, when I used Netfile, that was not possible. You had to print and mail the T1-ADJ. Now, of course, there are alternatives, as noted by @BertMulderCGA
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@galtinvests
" I am presently looking to adjust a 2023 T1 Return"
@BertMulderCGA
“just enter it as ‘change my return’ on the CRA Represent a Client”
KEY CONCEPTS
1 - T1 adjust online using the Change My Return via CRA Represent a Client. This reports only the Gross Business Income and the Net Business Income fields to the best of my recollection.
2 - T1 adjust via paper by completing both the T1Adj form and the T2125 forms attached together with any relevant vehicle use or UCC expense on capital assets. Use the notes fields to briefly describe your T1Adj reason as missed reporting or late slip or forgotten, etc. Send to CRA processing unit on the T1 Adj form.
I am trying to ReFile a return that I efiled originally but it says I can’t. I don’t hink “change my return” would work for my issue. I had filed an S8 CPP exemption with a start date of January when it should have been March. CRA knew I had made a mistake so they denied the exemption and told me to ReFile. If I have to paper file, my client will lose much sleep. And if she loses sleep, I will too! But I have no idea why ReFile does not work.
@galtinvests stated it is a T4A slip he wants to add. Change My Return lets you enter the T4A data, from which box 48 should flow to line 13500. If he also wants to apply allowable deductions from business income, he may have to figure that out manually, and report gross/net business income rather than the T4A slip.