TaxCycle 14.1.56194.0—T1 2024 for Emigrants, Deemed Residents and Section 116 Non-residents
This release allows for the transmission of returns for emigrants, deemed residents (section 250) and non-residents filing under section 116 from TaxCycle T1 2024.
To install this version immediately, download the full installer from our website or request a free trial. Once we enable the automatic updates for this version, TaxCycle will prompt you to install it according to the priority set in your TaxCycle Options. (To deploy auto-update files from your network, see the Auto-Update Files page.)
Release Highlights
Status of T1/TP1 Forms
The following form still shows the Preview watermark due to ongoing work:
- TP-766.34 Income Tax on Split Income
All other 2024 T1/TP1 forms were finalized in previous releases.
You may now transmit the following returns in TaxCycle T1 2024:
- Non-residents of Canada filing a return under Section 116 (reporting only a disposition of taxable Canadian property)
- Emigrant returns (those who have departed Canada in the tax year)
- Deemed residents of Canada filing a return under Section 250 (other than those who are deemed residents because they stayed in Canada for 183 days or more in 2024).
What is a deemed resident of Canada?
A client is considered a deemed resident for income tax purposes if:
- a) They stayed in Canada for 183 or more days in the year, did not have significant residential ties in Canada, and are not considered a resident of another country under a tax treaty between Canada and that country, OR
- b) They lived outside Canada during the year, are not considered a factual resident of Canada, and are one of the following:
- a federal or provincial government employee
- a member of the Canadian Forces (including overseas school staff)
- a person working under a Global Affairs Canada assistance program
- certain family members of an individual referred to in one of the three previous points.
Note that only returns for those considered to be deemed residents of Canada because of point b) are eligible to transmit through EFILE. To learn more, read the Canada Revenue Agency (CRA) page Deemed residents of Canada.
Other T1/TP1 Changes
- Customer Request T1—Added a paragraph to the client and joint letters to remind business owners that the CRA is transitioning to online mail as the default method of delivering most business correspondence and that they should log in to My Business Account and verify that they have a valid email address on file. This paragraph displays when the return includes an income statement (T2121, T2125, T2042, T1163/64) and the statement contains a business number (BN).
T2 Schedule 63 Nil Rate for 2025
We have updated T2SCH63 Return of Fuel Charge Proceeds to Farmers Tax Credit to reflect the rate of zero for days in 2025, as announced by the Minister of Finance on March 22, 2025. This rate replaces the prior January announcement of payment rates for 2025-26.
Nova Scotia Tax Changes in TaxCycle T2
TaxCycle T2 has been updated to reflect the changes introduced in Nova Scotia’s Bill 68 (Financial Measures (2025) Act), which received Royal Assent on March 26, 2025.
Effective April 1, 2025, the small-business tax rate has been reduced from 2.5% to 1.5%, and the small-business limit has increased from $500,000 to $700,000.
We have updated the TaxConstants worksheet and Schedule 346 (Nova Scotia Corporation Tax Calculation) to reflect these changes.
Resolved Issues
- T1—Fixed an issue that caused EFILE error 70127 to appear as a result of form T2017 not being marked as “used.”
- T1—TaxCycle no longer includes direct deposit information in EFILE transmissions to reflect the CRA’s announcement that they will no longer permit it.
- T1 and T3—Added additional messaging to income data entry slips that require a specific period entry for reported capital gains.
- T3—Resolved an issue where T1055 dispositions were not being reflected on S12 when some capital gains were allocated to beneficiaries.
- T3—Resolved an issue where exemptions under Part 1 trusts were still reporting Alternative Minimum Tax (AMT) amounts.
- T3—Resolved an issue where provincial AMT amounts were not being applied to multiple jurisdiction situations when business income was earned in those jurisdictions.
- T3—Added support for negative loss allocation amounts for revocable or blind trusts in box 26 of the T3 Slip Summary.
- Customer Reported T5013—Fixed a calculation error where TaxCycle applied the wrong rate for the days in 2024 on Schedule 63 (Return of Fuel Charge Proceeds to Farmers Tax Credit) if the fiscal period started before January 1, 2024.
- Customer Reported T5013—Fixed a filing error where the XML was not in the right format related to XML headers not getting generated correctly after filing some other slip type.
- Customer Request T5013—TaxCycle marks the Schedule 130 as “used” when transmitting a blank S130.
