T2038 and Investment tax Credit not able to EFILE error

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?

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

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.

Thank you again for helping me with this. CRA and callback are useless and I have spent hours on hold with them - A senior agent was not able to help, and they have not returned information to me.... So  T101 BOX120 CEE is 30K Box 128 is 30K Box 141(BC) is 30K The BC Mining Flow-Through tax credit claimed is 6K claimed in the Provincial Schedule. 24K is claimed on Line 22400 as expense. on the T1229 renunciation calculation for ITC is 30K  less 6K for the provincial credit, leaving 24K for the qualifying ITC. Where the Profile form is having trouble is the T2038, Calculating the allowable ITC at 24K X15% or 3600$  that transfers in part "B" METC -ITC that qualified for current yr ITC. This transfers to "G" ITC qualifying for current year claim. There was no minimum tax issue - there were no carryforward amounts in part "G"  this was the first year of ITCs available. You will note that I had to override the T2038 claim per EFILE help desk to file his return. I am planning to Refile or adjust after I have help to figure out this problem in full.   Thank you so much ! If you will look at this and can help me I am very thankful.  

 I will send the PDF file for this client 

Hi.  Me again.  Can you tell me exactly which fields you had to override on the T2038? According to the diagnostics, there were 2 fields.  And before e-filing, Profile did not give you any diagnostics about overrides or anything, right? Another question - in his carry forward summary it says he claimed $12,000 in investment expenses in a prior year.  How long have you been preparing his tax return?  Do you think he could have claimed something in the past that is affecting the availability of ITC's in the current year in CRA's records that you do not have in yours?  When I duplicate the data in my dummy file, it does claim the $3,600 (as it did in yours) and there are no errors messages or warnings.

wow I am really impressed that you are invested in my problem - Thank you!   So I will try to answer as best I can.   I had no error messages indicating any problem before I efiled his return. I did not override the ITC Credit Claimed until I had EFILE error messages, and had contacted EFile Helpdesk. It was suggested to me that I override the credit that would be taken for the ITC and carry this forward until we could resolve this. So I did not claim the ITC that had been calculated and I carried this forward on the T2038 Carryforward Chart Part F  - I took the Current Yr Credit Claim column 6 - changed that to zero from $3600 and now it is in column 9 balance carried forward. I have been preparing this fellow's return for 5plus years. He has never invested in this product before (I asked)   - I have not had a T101 for him before either - most of his investing has been in registered accounts prior to this. I can't find anything in his CRA history that relates to this.   Yesterday I had a discussion with Sr CRA agent, that we both affirmed with the T101 that he was eligible for this credit - not the individual specifically - but the T101 procedure. I believe this is a software issue now. Also these forms were in draft mode when I prepared his return and I had to wait until sometime in April to file .... 

Well, I have no clue then.  My research agrees - there is no reason he would not qualify.  I would try removing the overrides and doing a refile.  If that also gets rejected, I would print out the T2038 showing the calculation of the ITC and doing a manual T1ADJ. I looked at the efile form and cannot see anything missing on my dummy file. Very curious.....sorry I could not help.

Thank you very much for your help. I believe it might be a software issue. I will do as you suggest and try to do a refile, if that doesn't work I will post a T1 Adjustment manually. I appreciate you looking at this for me and trying to help me out. 

Thank you for all your help. Kindly would you remove the PDF attachment from the discussion board as it contains personal information. Thank you . 

I don't think I know how.  Maybe you have to do it as it is in your reply?

Hello there. I was just trying to solve this ongoing problem with the Profile support team regarding the T2038 and I had wanted them to remove the tax PDF file for my client from these postings.   I don't believe that anyone can read this or open it other than the recipient, but the profile agent said to contact you to have you remove it. I have tried on my end and cannot. If you cannot, I think we are okay - as I don't believe anyone else can open the file. I will be more careful next time to only send schedules etc next time. You have been very helpful and I appreciate the time you have put into this problem. 

At this point the only thing I can do is manually file a T1adjustment for this client. 

sorry, trying to edit and accidentally set

as new.