When an RL-8 slip has an amount in Box A this allows a transfer of an “amount” to the parent. It’s sort of the equivalent of the old Federal “Education amount” before it was eliminated.
The problem is that this transfer gets clawed back in 95% of cases by the amount of “Solidarity tax credit received in the prior year”, which is inputted to TaxCycle here:
CurrentClient.ScheduleS.Transfers.M[5]
In 95% of cases this results on no transfer being available. The big problem is that this box doesn’t get flagged by TaxCycle for input, and it’s not inputted or used anywhere else in the tax return.
Two suggestions:
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IMPORTANT: Please make a flag for this box when Taxcycle is calculating a possible transfer on this line:
CurrentClient.ScheduleS.Transfers.M[12]
Frequently I and my staff have left this transfer in the return and not even noticed it. Taxcycle indicates a transfer is available, so we transfer the amount. -
Even better would be if TaxCycle could suggest inputting the calculated Solidarity tax credit based on prior years. I realize this is a techincal difficulty since the credit was based 50% on the prior year return and 50% on the year before that. But at least if we know from prior year here:
CurrentClient.SolidarityTaxCredit.Credits.M[27]
that the taxpayer should have received Solidarity Tax Credit, then TaxCycle shouldn’t blindly suggest to us to transfer this Education Amount to a parent.
Unfortunately I’ve had many automatic reassessments resulting from this. I learned years ago not to get caught in this trap, but my staff haven’t all learned this yet and it’s been causing a lot of problems.
