T2038 and Investment tax Credit not able to EFILE error

Forum|Forum|4 years ago
May 3, 2022
2 replies
7 views

I have tried to EFILE an investment tax credit arising from a T101 slip. The Investment tax credit is calculated on the T2038 and transferred to the T1 Jacket as an Investment Tax Credit (line 41200). The Investment also qualifies for the BC provincial tax credit. The error in EFILE is #70412 and EFILE Help desk cannot help me. Also I have gone over everything with CRA and they can't help me either. It has been suggested that it is a software issue - .... I cannot get information on this. Can anyone help me? I have spent hours on this problem and on hold with CRA.

ProFile (Canada)

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J

janisbossenberry

Level 7

Is the amount showing on line 41200 the same as the amount that shows at the top of the T2038S as the credit? And is the provincial amount correctly showing on your provincial tax schedule? What province are you in?

A

Anonymous

Hi Thank you for answering me! I appreciate your time. so from the T101

So the BC Credit value is $6000 the CEE value was 30,000 and the T2038 is calculating the tax ITC at 30000. less 6000 - on the T2038 is 24000 calculating the ITC at 15% or $3600. calculating in Part B of T2038

I have gone through the T2038 manually - there is no calculation for minimum tax, and he has enough federal/provincial tax to pay to offset the credits. the Software is using 24000 to calculate the ITC . Hope this helps you in the analysis. The EFILE helpdesk suggests that maybe the problem is in the software itself, and CRA has not been able to help me yet either. The ITC 3600 is being transferred to the correct line 41200 on the Federal Jacket, but not being accepted by EFILE.

Thank you very much

J

janisbossenberry

Level 7

Can you tell me the box numbers from the T101? Is the $30,000 showing in Box 120 (CEE) or in Box 128 (ITC's)? And does Box 141 for BC show the $30,000? If I enter $30,000 in Box 128 for ITC's, it calculates the tax credit as 15% of the $30,000..... Also, on the T2038S screen (not the T2038), are there any #'s in the boxes below, showing all the ITC's claimed, carry forward, available, etc? Also, what is showing on the T1229 form - if you really have CEE, then is there a deduction showing on the T1 line 22400 for Exploration and Development Expenses? Sorry for all the questions, it is hard to visualize what is happening. I wonder if there is a way for you to send me the Profile data file to look at, or at least upload the T101, T1229, T2038, and T2038S forms.

J

janisbossenberry

Level 7

sorry, trying to edit and accidentally set

as new.

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