I have a NIL return, but will be refund due to loss carry-back.
If I select code 1 (refund) in cell 894, a diagnostic appears that cannot be cleared.
Other users have suggested that leave blank and CRA will refund automatically (assuming no other tax debts)
Is this true, or am I missing an entry field somewhere?
Further on this, what if client wishes to transfer the refund to next year (normally 2) or to other account(3) ?
Not sure, but I think cell 894 is for current year refunds only. When you have a loss carry-back (as reported on S4), there is no way to specify what to do with any possible refund that arises from it. From what I’ve seen, the refund gets sent to the client by default method (cheque or direct deposit, as established by the client). If you want something else done with it, perhaps you could send the S4 separately with a letter requesting the credit be applied to next year or whatever?