Overrides

Overrides

Override

When you use a tax program, or any other software, you may want or need to be able to change what the program has done.

In tax preparation, this frequently occurs because the tax professional often deals with information that he has not entered into the client's data himself.

However, you must take great care in using overrides as there are dangers inherent with this power.

Our field overrides can override any field/line on the federal or Quebec jackets of the income tax return, or any field on the efile return and accompanying SFD's (selected financial data).

The overrides do not cover every line or keying field in the income tax return, nor do they enable DT Max to go backwards and fix the supporting schedules, but they supply the knowledgeable user with a powerful tool to make sure that the tax return meets his standards and requirements.

Field overrides are return-specific. A federal field override will not affect a Quebec return in any way whatsoever, and vice versa. A field override on the jacket, however, will affect the efile fields, but a field override on the efile field will not impact the jacket. Overrides affect all calculations that takes place they appear, but none before. You must, therefore, verify and check for consistency.

Net-Income

If you need to override the net income of the taxpayer, the keyword Net-Income enables you to enter this override amount for line 236 of the federal tax return

Note that if Net-Income is entered as an override, you may not get a tax return that you can file. Note also that the net income could affect the tax calculations of other members of this taxpayer's family.

For purposes of Quebec tax credits related to family income, use the keyword Net-Inc-Que to enter the estimate of line 275 (Amount used for the purposes of determining net family income) for the taxpayer's spouse or dependant.

If the spouse's tax return is not being processed, you may enter this amount with the keyword Net-Inc-Que . in the group RelatedParty .

See the CRA's general income tax guide:
Line 326 - Amounts transferred from your spouse

Net-Inc-Que

For purposes of tax credits related to family income, use the keyword Net-Inc-Que to estimate the amount of line 275 of your client's Quebec income tax return.

See the CRA's general income tax guide:
Line 326 - Amounts transferred from your spouse

Taxable-Income

This amount is used for the "adjusted taxable income" when calculating Schedule 2 for the age amount transfer.

See the CRA's general income tax guide:
Line 326 - Amounts transferred from your spouse

CPP/QPP-Note

Give a reason why a change is required.

CPP-Elect-OV

Use CPP-Elect-OV to override the default, and make sure that for this client, optional pensionable earnings such as tips, wages and salary insurance benefits are considered or not, as required. If the client elects to pay in to the Canada Pension Plan for such earnings, choose "Yes" and DT Max will treat these optional amounts as pensionable and include them in the calculation of the CPP contributions.

See the CRA's general income tax guide:
Line 308 - Canada or Quebec Pension Plan contributions through employment
Line 310 - Canada or Quebec Pension Plan contributions payable on self-employment and other earnings

QPP-Elect-OV

Use QPP-Elect-OV to override the default, and make sure that for this client, optional pensionable earnings such as tips, wages and salary insurance benefits are considered or not, as required. If the client elects to pay in to the Quebec Pension Plan for such earnings, choose "Yes" and DT Max will treat these optional amounts as pensionable and include them in the calculation of the QPP contributions.

CPP-EarnOV

If you need to override DT Max's calculation of total pensionable earnings for the Canada Pension Plan, use CPP-EarnOV. Note that a need to override this amount may indicate an error in the other amounts entered.

DT Max will prorate the amounts due for persons reaching the ages of 18 or 71, as well as persons beginning to receive a disability or retirement pension during the year.

The number of months used for prorating when starting to collect CPP or QPP benefits is indicated on the T4A(P) slip. Enter this information in your client's file using PensionMonth .

The following options are applicable for the keyword CPP-EarnOV.

Pensionable net self-employment earnings

Pensionable optional earnings

Pensionable employment earnings

Basic exemption limit (if less than 12 months)

CPP/QPP deducted on the T4

CPP or QPP contributions withheld on the T4 or RL-1.
Federally, if the CPP withheld on the T4 is under deducted, enter the CPP that should have been deducted from the T4. Enter the amount reported on line 308 of the pre-bankruptcy federal income tax return.
For Quebec tax purposes, enter the amount reported on line 369 the pre-bankruptcy Quebec income tax return.
However, if the QPP withheld on the RL-1 is underdeducted, and you have elected not to pay the underdeducted amount ( ), enter the QPP that should have been withheld on the RL-1. If you reported only employment income on your pre-bankruptcy income tax return, enter the amount reported on line 351 of that return. If you have both employment and self-employment or optional income, enter the amount being multiplied by 2 on line 8 of the Quebec workchart calculation of line 351 in the pre-bankruptcy return.

See the CRA's general income tax guide:
Line 310 - Canada or Quebec Pension Plan contributions payable on self-employment and other earnings

QPP-EarnOV

If you need to override DT Max's calculation of total pensionable earnings for the Quebec Pension Plan, use QPP-EarnOV. Note that a need to override this amount may indicate an error in the other amounts entered.

DT Max will prorate the amounts due for persons reaching the ages of 18 or 71, as well as persons beginning to receive a disability or retirement pension during the year.

The number of months used for prorating when starting to collect CPP or QPP benefits is indicated on the QPP income slip. Enter this information in your client's file using PensionMonth .

The following options are applicable for the keyword QPP-EarnOV.

Pensionable net self-employment earnings

Pensionable optional earnings

Pensionable employment earnings

Basic exemption limit (if less than 12 months)

CPP/QPP deducted on the T4

CPP or QPP contributions withheld on the T4 or RL-1.
Federally, if the CPP withheld on the T4 is under deducted, enter the CPP that should have been deducted from the T4. Enter the amount reported on line 308 of the pre-bankruptcy federal income tax return.
For Quebec tax purposes, enter the amount reported on line 369 the pre-bankruptcy Quebec income tax return.
However, if the QPP withheld on the RL-1 is underdeducted, and you have elected not to pay the underdeducted amount ( ), enter the QPP that should have been withheld on the RL-1. If you reported only employment income on your pre-bankruptcy income tax return, enter the amount reported on line 351 of that return. If you have both employment and self-employment or optional income, enter the amount being multiplied by 2 on line 8 of the Quebec workchart calculation of line 351 in the pre-bankruptcy return.

See the CRA's general income tax guide:
Line 310 - Canada or Quebec Pension Plan contributions payable on self-employment and other earnings

CPP/QPP-Method

Use this keyword to override the method used by DT Max to calculate the CPP and QPP contribution deduction for Quebec tax purposes.

The CRA bases the CPP and QPP contribution deduction on employment earnings on the amount of CPP and QPP actually deducted on the T4 slip and RL-1. If the CPP or QPP has been underdeducted by the employers, the CRA expects the actual amount deducted on the T4 slips to be claimed on line 308 of the federal income tax return. However, if your client has both employment and self-employment income and the amount deducted is not sufficient, the CRA expects your client to make up the difference and uses the amount that should have been deducted on these income slips to determine the amount payable on self-employed and optional earnings on schedule 8 (line 9). For federal tax purposes, DT Max adopts the CRA's method.

Revenue Quebec calculates this differently. See the worksheet for calculating line 351. If your client only had employment income, Revenue Quebec still claims that the contribution deduction is the amount of CPP or QPP that should have been deducted on the T4 slip and RL-1. In cases where there is both employment and self-employment income, despite the fact that CPP and QPP have been underdeducted by the employers, the contribution payable on self-employment earnings is based on the CPP or QPP amount actually deducted on the T4 slip or RL-1. For Quebec tax purposes, DT Max adopts Revenue Quebec's method.

The following options are applicable for the keyword CPP/QPP-Method.

Revenue Quebec's method (default)

Choose this option if you want the CPP and QPP contribution deduction to be determined as per Revenue Quebec. This is the default.

Election not to pay underdeducted amount

Choose this option if you do not wish to pay the underdeducted CPP and QPP amount on the T4 and RL-1 slip(s). This option is only relevant if you have both employment and self-employed or optional earnings.
DT Max will determine the amount of QPP payable on self-employed and optional earnings by using the amount of CPP & QPP THAT SHOULD HAVE BEEN DEDUCTED on the T4 or RL-1 slip(s) if the amount of CPP and QPP has been underdeducted.

Election to pay underdeducted amount

Choose this option if you elect to pay the underdeducted CPP and QPP amount on the T4 and RL-1 slip(s). For Quebec tax purposes, this option is only relevant if you have both employment and self-employment or optional earnings. Federally, this option is also relevant if you have multiple T4 slips.
DT Max will determine the amount of QPP payable on self-employed and optional earnings by using the amount of CPP & QPP ACTUALLY DEDUCTED on the T4 or RL-1 slip(s) if the amount of CPP and QPP has been underdeducted.

Election to pay underdeducted amount - fed. only

Deduct CPP/QPP based on T4 actual CPP/QPP contr.

Choose this option if the deduction on line 351 of the Quebec tax return is to be based on actual CPP/QPP contributions withheld from employment. This option is only relevant for T4 earnings with underdeducted CPP/QPP contributions. The underdeducted amount will not be payable by the employee. Do not choose this option if you have self-employed or other pensionable earnings.

CPP/QPP-Month-OV

Use /QPP-MONTH-OV to override the number of months used to determine CPP/QPP contributions required on earnings from self-employment and optional contributions.

Details.cpp

Use this keyword to give details regarding pensionable earnings when they differ from what would normally be considered to be pensionable.

GSTDependOV

Use GSTDependOV to override the goods and services tax eligible number of dependants.

CTB-Child-OV

CTB-Child-OV child included for purposes of the CTB calculation

QCTB-Child-OV

QCTB-Child-OV child included in calculation of Quebec child support amount

TaxAdjOVQ

Use this keyword to override the amount on line 402 of the Quebec schedule E for other adjustments to tax payable.

The following options are applicable for the keyword TaxAdjOVQ.

Lump sum pension accrued to December 31, 1971

Retroactive payment

Alimony or maintenance arrears

Other (specify)

OAP-OV

Use the keyword OAP-OV to override the calculated OAS pension amount determined by DT Max.

When calculating the amount, DT Max prorates the OAS pension in the following situations:

for taxpayers turning 65 years of age in the year;
for final returns (in the year of death)
for pre-bankruptcy & post-bankruptcy returns (if your version includes the bankruptcy module)

If the taxpayer did not receive the amount calculated by DT Max or if the taxpayer is not eligible to receive the OAS pension, override the amount with OAP-OV keyword.

If OAP-OV is entered as $0.00 or any other amount, enter the reason. The explanation provided will appear on the tax return. If you do not enter the reason, both the CRA and the Ministère of Revenu Quebec will assess the taxpayer for the total amount (deemed to have been received).

Pens-Ded-OV

Use Pens-Ded-OV to override DT Max's calculations for the pension income eligible for the pension income deduction.

Using the information available, DT Max will find the best possible tax alternative.

First it will roll over any periodic payments from a RPP or DPSP ( Pension) to a spousal RRSP. Then it will search for eligible RPP/RRSP rollover amounts and roll over as much as possible and print these rolled over amounts on the T2097.

DT Max deems it more advantageous to take the rollover over the regular contribution, because it increases the RRSP room, and RRSP deduction limit the following year. This is done even if it generates the penalty for excess over-contributions.

If this is not best for your client and you do not wish the highest possible rollover amount to be taken prior to any payments to an RRSP based on the RRSP deduction limit for the current year, enter RRSP-To-Deduct to limit these rollovers. In these cases, verify the amounts entered with Elig-Room and Undeducted-Contr.

It may happen that a taxpayer under 60, who claims the pension income deduction, cannot claim both this deduction and the rollover, and DT Max opts to take the pension income deduction. If this is not optimal and it may not be, override this by using the keyword Pens-Ded-OV and setting it to 0 to allow DT Max to take the rollover amounts instead of the pension income deduction.

When you enter a direct transfer, DT Max enters the amount as income and as a deduction. If however it is not a direct transfer and the income amount is only eligible for a rollover, you must enter the RRSP contribution separately. Use [Alt-J] to enter different values for other jurisdictions.

See the CRA's general income tax guide:
Line 314 - Pension income amount

Poverty-OV

This deduction will override the deduction calculated in taking into account amounts from T4 remitted to the order. See the keyword Footnotes.t4 in the T4 group.

If you have taken a vow of perpetual poverty as a member of a religious order, you can deduct on line 256 the amount of earned income and pension benefits that you have given to the order. Attach to your paper return a letter from your order or your employer stating that you have taken a vow of perpetual poverty.

For Quebec, you may enter the charitable donations that you made to your religious order. The amount you enter must not exceed your income (line 275). If your donations exceed 75% of your income, enclose with your return the Certificate Respecting a Member of a Religious Order (form TP-752.0.1.i-V) issued to you by an authorized representative of your religious order.

(You are required to submit the certificate only if you have not previously filed the certificate or if you changed religious orders durring the year).

See the CRA's general income tax guide:
Line 256 - Additional deductions

ITC-RefundOV

Use the keyword ITC-RefundOV to request the refund of the investment tax credit.

Use the spacebar to select "Yes" or "No".

This will override your selection in the user's defaults.

See the CRA's general income tax guide:
Line 454 - Refund of investment tax credit

AMT-OV

Use AMT-OV to override the DT Max automatic AMT calculation on the federal return. If you use this override, you will have to make sure that the correct amount is carried forward. Use [Alt-J] to enter different values for other jurisdictions.

ForTaxCrOVF

Use ForTaxCrOVF to override the overall federal foreign tax credit deriving from all countries calculated according to part I of form T2209. This will override the foreign tax credit reported on line 509 of schedule 1 of the federal income tax return and reduce the basic federal tax. You must provide the supporting schedules and T2209 form. DT Max will not produce the T2209 in this case.

ForTaxCrOVP

Use ForTaxCrOVP to override the overall provincial foreign tax credit deriving from all countries calculated according to form T2036 for provinces other than Quebec, and TP-772 for Quebec. This will override the provincial foreign tax credit reported on the provincial tax credit schedule or Quebec schedule E. You must provide the supporting schedules and T2036 or TP-772 form. DT Max will not produce the T2036 or TP-772 in this case.

OverseaCrOV

Use OverseaCrOV to override the overall overseas employment tax credit deriving from all countries calculated according to form T626. This will override the overseas employment tax credit reported on schedule 1 of the federal income tax return and reduce the federal tax. You must provide the supporting schedules and T626 form. DT Max will not produce the T626 in this case.

See the CRA's general income tax guide:
Line 426 - Overseas employment tax credit

MultiJurisOV

Use MultiJurisOV if your client has professional and/or business income from provinces other than his province of residence, and you need to allocate the percentage of income attributable to each province on a global basis. Enter this keyword, the province and the percentage of business income originating in that province. Ensure that you allocate 100% of business income in this way if you use this overrride.

EXAMPLE:

MULTIJURISOV    ONTARIO 35%

MULTIJURISOV    QUEBEC 30%

MULTIJURISOV    BRITISH COLUMBIA 20%

MULTIJURISOV    NEW BRUNSWICK 15%

It is preferable to use the keywords Jurisdict.bu in the Business group and Jurisdict.t in the T-Slip group so that DT Max may calculate percentages due to any province on a per business basis. Use [Alt-J] to enter different values for other jurisdictions.