Family Data Connection
Personal Taxprep now allows you to prepare and save the returns of all family members (e.g. parents and dependants) in a single client file.
To know how to process family members’ returns in a single client file, consult the Add Dependant's Return Help topic available in the “Returns of Family Members” section of the Technical Help.
Restrictions concerning the
returns of dependants processed in the same client file as the returns
of parents
Certain tax situations encountered by the dependants do not allow processing of their returns in the same client file as their parents’ returns. Therefore, you cannot add a dependant’s return:
- Contains a spouse return
- Contains a dependant return
- Has a date of entry or date of departure entered in the Identification
- Is for a non resident with residency code NR(216) or NR or for a deemed resident
- Relates to a bankruptcy (pre-bankruptcy, in bankruptcy or post-bankruptcy)
- Has a marital status ‘Married’ or ‘Common-law’
- Has a change in marital status in the year
A warning message will appear if you attempt to add a dependant using a current year or prior year data file that contains any of these restrictions.
In addition, the areas of the Identification that relate to any of these limitations will not be available in a dependant return, so you will also be unable to create these situations in a new dependent return.
Dependant returns can in turn have their own dependant information entered on the Family Profile (e.g. for a single parent being supported by other family members) but the Add a dependant's return option will not be available as you cannot create a dependant return within a dependant return.
When do you need a separate dependant’s return?
The primary reason to create a separate dependant’s return is because you intend on filing a return for the dependant (e.g. to establish RRSP/PRPP contribution room or to receive refundable credits).
If you do not intend on filing a return for the dependant, you may not need to create a separate return for the dependant. Instead, you can continue to enter any data for that dependant directly in Family Profile (e.g. for a young child that has no income for which you are claiming only the disability amount).
However, there may be certain advantages to creating a return for the dependant even when you do not intend to file a return:
- Automatic Calculation of Non-Refundable Credits
Where the dependant has employment income, by creating a separate return, Taxprep can automatically calculate the non-refundable credits for CPP, EI and Canada Employment amount based on the data entered for the T4 slip.
If you do not create a separate return, you must enter this information at the bottom of the Family Profile screen so that it can be taken into account in calculating the transfer of amounts from the dependant.
In addition, by entering the complete data for the dependant’s return, Taxprep will be able to optimize certain calculations in the dependant’s return, which may impact on the transfers to the supporting person(s)’ return such as tuition transfers.
- Ability to View Information from the Dependant Returns
When a separate dependant return is created, the return can be displayed in the Client Manager and you can create filters that display information from these returns. If the dependant information is only entered on the Family Profile (i.e. a separate return is not created), you will only be able to display information from the 1st copy of the Family Profile in the Client Manager.
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Roll Forward
Dependant returns will be retained in the supporting person’s file when the file is rolled forward (similar to the spouse’s return).
You can also roll forward the client file, including all of the dependant returns, to a planner file.
See Also