I’m curious if anyone has any experience using the new T3 Reconcile function in Tax Cycle, and how they’ve found it. We’d like to implement it into our firm’s processes for 2021, and I’m currently testing it out to see how that might look for us.
One of the things I notice right away, is that there seems to be a bit of an issue when you are dealing with T3 slips that are from a joint investment account and being split between two spouses. In my case, Spouse A has the T3 slips in their name (and their SIN on the slip) and spouse B receives 50% of the investment income allocation (by allocating 50% on the T3 input screen)
The T3 Reconcile screen is showing warnings for Spouse B, as it hasn’t imported any data from CRA for T3 slips (since that spouse doesn’t have any slips attached to their account), but it is comparing the CRA import against the 50% of income that was allocated from spouse A.
When I look at the T3 Reconcile screen for Spouse A, I do not see any warnings, as Tax Cycle was able to match up the slips I input directly to the data that was pulled from CRA.
Shouldn’t Tax Cycle be looking at the slips that were actually input into the software, and not what has been allocated between each spouse? Otherwise any time I have a situation where the taxpayers have joint investment accounts and share investment income my T3 Reconciliation will show warnings.
Does anyone else have experience with this, or suggestions?
I’ll try to clarify a bit. To start off, I am in the 2020 T1 module and the return is saved as a planning return, since I’m just doing a test.
Spouse A has a tax slip from a mutual fund, and it reports:
Box 21: $4,720.85
Box 26: $2,048.45
Box 49: $479.65
Box 25: $3,325.69
Box 34: $5.02
On the slip entry screen, we’ve told Tax Cycle to split 50% of the income with Spouse B.
On the T3 rec for Spouse A, it shows the mutual fund, and under each box number it shows the total amounts as listed above. There are no warnings on the T3 rec for Spouse A.
On the T3 rec for Spouse B, it does not show the mutual fund. There is a warning at the bottom under each box code that says total reported (equal to the amounts listed above) and that it is more than the AFR amount (zero).
This is the T3 rec screen for Spouse B. It does not show the mutual fund I described above, and only shows a different mutual fund that was issued in Spouse B’s name/SIN. The warning messages pertain to the mutual fund above.
