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Optimization details


#1

Is there any chance that Elizabeth could do a blog describing what level of optimization is done for various things on the T1?

For example, we have the system set to optimize medical, but we noticed it did not optimize the medical between spouses. It appears that it is only optimizing the period. Is that correct or do we possibly have something set incorrectly.

It is early in the season so we haven’t had all of the situations yet, so I am wondering if there is a document somewhere that will describe the extent of each optimization listed on the Opt screen and who it will apply to.

For example under family optimizations, it says Optimize credit for dependents. Is this between spouses and dependents or just dependents? What credits does it include?

Thanks.
(And sorry for making it look like I am assigning you work Elizabeth, but you do a great job on the blogs :smile:)


#2

No worries, @matthew. It’s a great idea, actually. I need to do some sleuthing with my colleagues to make sure I understand what is and what is not optimized right now.


#3

Okay, here’s the scoop…

If you look at the Optimizations worksheet in T1, you can see what is and what is not optimized.

Everything on there is working EXCEPT the medical expense optimizations. This was supposed to be hidden until we finished that particular optimization, but it was not.

We will hide the section on the optimizations worksheet or add a note about it coming soon.

Changes to optimizations add a fair amount of risk to calculations, something we usually prefer not to mess with in the middle of tax season, so I can’t promise it will be in place by the end of the season. The team will decide whether to make the change once T3 is out the door.

In the meantime, you will want to check which spouse gets the medical expenses and manually set them up on the Medical worksheet.


#4

It is true that the medical does not optimize between spouses. I just had that problem and had to disable the optimize to change the medical cost to the lower income. Also I have had problem with RRSP when the optimize gave a lesser result. This makes me unsure of the rest of the calculations within Taxcycle. I brought this problem up last year and sent my tax file for your staff to check but nothing yet. Without optimization there was a $1000 plus swing. Just my thoughts.
Thanks, Steve


#5

We have also just turned off the optimization due to an RRSP issue. I just did a very simple T1 with an RRSP contribution that TaxCycle decided not to deduct. I find it bothersome that the software would do this incorrectly and not even display a diagnostic that it had done so. A diagnostic is only displayed when I choose to deduct the contribution. It then indicates that I am not claiming the “optimized” amount of zero.
After a little investigation it seems related to WCB income. Where a return has taxable income as well as WCB it seems to trigger the software to not deduct the contribution when it is clearly to the client’s advantage to deduct.


#6

@Jriley

Can you send us a copy of a return that illustrates this problem, or the income amounts, RRSP contribution and province of this return.

We will investigate and provide our comments. We could add a message or fine tune the optimizations. Thanks for your help.

~ Cameron


#7

I have not heard back yet about the optimization problem. Please check. I can not file without this issue being addressed. It is about RRSP & medical calculations not optimizing.
Other programs all agree with the same result but not Taxcycle. Sorry but I hope I am wrong.
Thanks, Steve
PS: I have sent the file to Taxcycle last year to illustrate this very problem, but nothing.This file was also shown at the London seminar to Marc.


#8

I could send you the file but I think it would be easy for you to recreate. The province is BC. Enter T4 income of say $20,000, RRSP contribution of $1,000. The program deducts the RRSP. Now enter $25,000 WCB income and the RRSP is carried forward rather than deducted.