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Can't Get S8 to Work Properly when TP over 65


#1

Something seems to have changed with the way the T1 module handles CPP for a self employed taxpayer over 65 years old who has already stopped contributing to the Canada Pension Plan.

TaxCycle seems to want the client to start paying into the Canada Pension Plan again.

On the Schedule 8 Part 1, the year the client previously elected to stop paying into the Canada Pension Plan is not being carried forward from 2016. If you manually enter the year in that box (lets say you enter 2013) TaxCycle does not reduce the CPP due on self employed earnings to zero. If you enter any amount in box 372 (I elect to stop contributing to CPP) TaxCycle does not reduce the CPP due on self employed earnings either.

It seems that the number in box A in Part 2 is not changing from 12 months regardless of what I enter for the year of election or box 372. Where does TaxCycle pick up the 12 months in box A in Part 2 of the schedule from? (The number of months during which the CPP applies in 2017)

The only way I seem to be able to get the proper answer is to manually over-ride the 12 months in Box A but last year this seemed to work without over riding anything.

In this case the client’s date of birth is February 1946 and the election was filed in 2013

Can someone else confirm, or am I missing a check mark in another box somewhere?

{edit}
I can’t seem to get it working even for an employee over 65 with T4 Employment Income if I put a date in the election to stop paying box.
{/edit}


#2

I can confirm my one case so far seems to be working as expected.


#3

The CPP calculation requires the entry of the T4AP slip with retirement pension in box 14 and months in box 23 along with when the election started, 2013 in this case, for it to know they meet all the conditions. If the client was born in 1946, they are over 70 in 2017 and no longer subject to CPP.
You had me very worried, until I remembered to enter the T4AP.
Let us know that this solved it for you.


#4

@Allen

Thanks for solving the puzzle. Yes, it seems if I enter 12 months on line 20 of the T4AP and at least a dollar on line 14 of the T4AP that it calculates the CPP on the S8 correctly. I will remember that in future.

I am trying to get a jump on things by entering business statements for regular clients so when they come in later with their T-slips and other documents much of the leg work has already been done. I didn’t realize the S8 was affected by entries on the T4AP.

Sorry to scare you and thanks for the help, things are good now… :slightly_smiling_face:

BTW… I made a typo on the date of birth in my first post, I meant to type February 1948 (she turned 70 in 2017). That must have had you scratching your head.