Ufile (online) does not seem to calculate the foreign federal and provincial tax credits correctly.
On form T2209, Ufile seems to use gross foreign-non-business income on line 433. In my case, this is resulting in a fraction greater than 1 (which makes no sense as I have both US and Canadian sourced income). Speifically, ufile does not deduct foreign pension plan contributions or foreign union dues from my gross foreign employment income (even though it collects this information when it asks for foreign income).
Has anybody else encountered this and found a way around it?
Ufile and federal foreign non-business tax credit
Moderator: Mark T Serbinski CA CPA
I'm not sure that there is a problem.
Looking over the foreign income sheet, it never asks for foreign pension contributions, notr union dues. Where are you entering these?
Or is this income that was reported on a T4? If it was, you are still supposed to use the "foreign income - employment" form as well. Are you using this?
What did Ufile say when you reported the error?
Looking over the foreign income sheet, it never asks for foreign pension contributions, notr union dues. Where are you entering these?
Or is this income that was reported on a T4? If it was, you are still supposed to use the "foreign income - employment" form as well. Are you using this?
What did Ufile say when you reported the error?
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
I am using the online version of Ufile.
In the Interview portion of the software, there is an option under foreign income & property to add a tab for "foreign income - employment". On this form they ask for the source country, exchange rate used, foreign income (both on and not on a T4), a whole series of questions about the overseas tax credit, etc. They also ask for employment expenses related to foreign employment (union dues, rpp contributions, pension adjustment on foreign income).
In my case, there is no T4 for my foreign employment income (my employer is a US University to which I commute weekly). I entered my union dues and 401(a) contributions in the "annual union or profession dues" and "RPP contributions" boxes. However, the same problem occured when I combined these amounts and reported them in the "other foreign employment expenses - specify" box. This is all within the "foreign income - employment" tab.
The issue is that Ufile does not subtract these two amounts from my foreign employment income for the net foreign income amount on form T2209 . Rather, it uses the gross foreign non-business income and divides it overall net income (from the T1).
In the Interview portion of the software, there is an option under foreign income & property to add a tab for "foreign income - employment". On this form they ask for the source country, exchange rate used, foreign income (both on and not on a T4), a whole series of questions about the overseas tax credit, etc. They also ask for employment expenses related to foreign employment (union dues, rpp contributions, pension adjustment on foreign income).
In my case, there is no T4 for my foreign employment income (my employer is a US University to which I commute weekly). I entered my union dues and 401(a) contributions in the "annual union or profession dues" and "RPP contributions" boxes. However, the same problem occured when I combined these amounts and reported them in the "other foreign employment expenses - specify" box. This is all within the "foreign income - employment" tab.
The issue is that Ufile does not subtract these two amounts from my foreign employment income for the net foreign income amount on form T2209 . Rather, it uses the gross foreign non-business income and divides it overall net income (from the T1).
Looks like you are headed on the right direction, but not quite.
that page clearly states that union dues and RPP contribution must appear on the T4 to be put on the lines you mention, so you should not use those lines . You should use the last expense line.
That said, I believe that even if you put them correctly on that line, it will not change your net foreign income. But certaily at least try this before contacting Ufile.
Another thing you are probably foirgetting is that your 401 contributions need to be handled with a special form. RC268. Have you done this? you get this through the RRSP page. Do this too before contacting Ufile.
So, as I said, you need find out what Ufile said when you reported the error?
Other than that, this is a software issue that you should take up with ufiile.
that page clearly states that union dues and RPP contribution must appear on the T4 to be put on the lines you mention, so you should not use those lines . You should use the last expense line.
That said, I believe that even if you put them correctly on that line, it will not change your net foreign income. But certaily at least try this before contacting Ufile.
Another thing you are probably foirgetting is that your 401 contributions need to be handled with a special form. RC268. Have you done this? you get this through the RRSP page. Do this too before contacting Ufile.
So, as I said, you need find out what Ufile said when you reported the error?
Other than that, this is a software issue that you should take up with ufiile.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
Hi Nelsona,
Yes, I did complete the RC268 (including my contributions and my employers match in the appropriate fields).
I will keep playing with Ufile and will contact them if necessarily. I may just use the fillable forms on CRAs website and send in my return by mail (rather than dealing with these software issues).
Thanks again.
Yes, I did complete the RC268 (including my contributions and my employers match in the appropriate fields).
I will keep playing with Ufile and will contact them if necessarily. I may just use the fillable forms on CRAs website and send in my return by mail (rather than dealing with these software issues).
Thanks again.