I am at a loss here. This client is a mid 20’s single Mom, who has had no changes in her situation in years.
I can not figure out why it is not applying for CAI for her.
There is no DOD and no sign offs that I can see that would make a difference.
Any idea’s would be appreciated !!
What province of residence?
Update your software. CAI no longer refunded on the tax return.
It is showing Ontario, I checked that also.
I would agree to check if you have the newest TaxCycle update.
I can see on your screenshots that $300 is the base adult amount, implying you are in Ontario and Ontario is selected on the Info tab as the province of residence.
And since there is no checkbox posted on you photo for which spouse should claim it, it implies that this person is SINGLE (spousal returns show that optimization checkbox, at least for my Manitoba spousal clients). So those parts of the return seem to be completed correctly.
Yes I understand it is not on the tax return but it should show in the software and on the letter, it does for all our other clients.
If your tax software is up-to-date, and you get proper results for all your other clients, what happens if you create a test client who has the same inputs as this current client (ie: gradually enter entries on this test client’s return while monitoring the S14 results to see when they zero out. Can you reproduce this situation? Perhaps this type of problem solving will help pinpoint where the conflict is.
Crystal check review messages about the children eligible there should 3 review messages did a single mom and mine was fine and the software last three digit are 117do you have your background color set to male blue and female set to purple?
As @niina said, it should no longer show up on the tax return. See:
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/cai-payment.html
Yes I have the most resent version of the software, and even though it is not on the tax return anymore, it shows up in the letter, just like CCB, GST and Provincial Credits, it shows up on every other return as a refundable credit that is paid out in the future.
So I figured it out based on @kozakworld suggestion, I tried to duplicate what happened.
The return was carried forward into 2021 and detached from her spouse, prior to detaching TaxCycle had the credit going to the primary (her ex-spouse) and when it was detached, the credit went with him, and there is no way to have this credit default back to her.
This is a software glitch, as there is no way to get this back after detaching. It should automatically default if there is only one file.
@Nezzer, although the CIA is no longer applied on the tax return, the Schedule 14 is still present, thus allowing us to select the option for the additional 10% outside the Metropolitan Area. For coupled returns, the form allows the optimization of which spouse should receive it, although it’s strange that this option is there considering that TaxCycle has stated it will be applied to the return that is e-filed first (I haven’t seen CRA’s documentation showing this).
What I’m wondering, Crystal, is if you repeat the carryforward again, and before uncoupling, if you opened the S14 and selected the credit be applied to this spouse that you are having difficulty with, save, and then uncouple the return, would the credit now show up for this client? Just a thought.
@kozakworld, Yes it does if you select it before you detach or uncouple the returns. But if you save both returns, the spouse that did not have it on their return can not get it to show on theirs. I know that you do not need to apply any longer, like GST credit it will automatically be applied for based on your status on the tax return. It is also my understanding, like GST credit, if married it will apply to the first persons return that is processed at CRA.
I appreciate your help, I still feel this is a fault that it should automatically apply, but at least we have a work around at this point.
Have a great night !!
