Selecting Box 28 on the T4A form to be reported on a T2125 as professional income does not work properly. Instead it adds it to Part I of the revenue section (business income) rather than Part 2 Professional income.
Schedule 2 Spouse Income section:
When preparing a return for a taxpayer, without preparing the return for the spouse, the spouse’s income is entered on Schedule 2.
- Schedule 2 does not accept negative values for self employment losses;
- the T1 jacket question “Was your spouse self-employed in the year” does not change to Yes even if positive self-employment income is entered on Schedule 2.
T4 CPP over-contribution diagnostic for taxpayers who turn 70 in 2014:
The CPP calculation for taxpayers turning 70 years of age in 2014 on Schedule 8 is correct.
On the T4 screen the diagnostic indicates a CPP overpayment based on the standard CPP calculation (pensionable - $3,500 x 4.95%) rather than based on the Schedule 8 calculation. The diagnostic misleads the preparer into looking for a CPP overpayment based on the T4 screen.
A better diagnostic on the T4 screen might be a warning that taxpayer turned 70 and therefore check Schedule 8.