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T5 reassessment from 2019 wrong gross up?

I just had a T1 client reassessed for a T5 issued in 2019. We had entered it as $60,000 and it came up with the automatic taxable amount of $69,000. CRA just reassessed the taxable amount at $69,500.

Just wondering if others have seen that and whether I set up something wrong to have it gross up the the wrong taxable dividend amount?

I would first go on RAC and review the slips that are filed, my first guess would be an additional slip that was missed.

No just the one t5, when I look at the slips filed on cra website it shows the amount that they changed it to. It appears that the automatic gross up was incorrect on the t1

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Jim,

I am curious what $60,000 actual dividend would show on your version for 2019 as the taxable amount?

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Which dividends are you talking about?
Box 10 (15%) or Box 24 (38%)?
Do both Box 10 and Box 24 have non-zero numbers in them?

Do you have all (and all Amended) T5s issued directly from the slip issuer?
What does the slip issuer have in Boxes 25 and 11 ?
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“when I look at the slips filed on cra website it shows the amount that they changed it to”

That sounds like it involves an amended slip?

If box 10 is $60,000 then box 11 should be $69,000. If the slip on file on rep a client is different then likely it was filed incorrectly and the issuer may need to amend.

But it’s only tax on $500 dividend, your fees probably past that already,:grin:

I had the same situation a few years ago, but with a much larger amount. CRA randomly calculated the gross-up, even though the T5 slip was e-filed. After a call to CRA, they admitted they had no idea what happened. I just submitted an amended T5 slip to correct the problem. If this wasn’t a T5 you prepared, its probably not worth the time to figure out how to fix the problem for such a small amount.