Doing a final T1 for a client who died in Feb 2018. T4A OAS slip shows box 18 = 1,173.32 which matches the AFR value. But, TaxCycle shows box 18 as a calculated value = 7,121.31. I can override it, but why is it doing this? Also getting this message (see screen shot):
Hey Nelson, I think it is that you have ticked the option to put the maximum yearly OAS. Just remove the tick for this client and all should be good or you can just accept the AFR value which is correct. Probably best to accept the AFR value.
John
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Hi @john4,
Thanks! I found it in the options (new file defaults). Didn’t realize it was a Tax Cycle default - would have expected the warning message to say something like, “…doesn’t match [options] default…”
Hey Nelson, Actually, that should not happen! If you have show the taxpayer as deceased, Taxcylce should ignore the yearly default option because it can not be correct. Not a big deal, but perhaps Taxcycle should program in an automatic override.
John
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If your client died before receiving the February OAS, consider reporting it as a right or thing. Same applies to CPP and possibly other items.
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@keith1
I assume you are advising re: tax planning? Thanks, but I’m just trying to figure out if it is a bug in the software - causing that error message. The client had very little income, no assets, and there will be no tax payable. So, no reason to use a rights or things return.