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Taxman 2012

Version 1.3 Ready!

CRA approved!   CRA has finally put up on the web the last of the 2012 forms. So I've seen it all and barring more bugs Version 1.3 should be it. See below at Bugs and Version History for more.

Note: With Version 1.2, the Worksheet changed and henceforth you only enter the number of months you received CPP disability benefits (retirement benefits no longer matter).

Taxman 2012 only comes as an Upgrade so you must already have the full Taxman installed on your computer (any year's full version makes all upgrades work).

Taxman!   Taxman2012 Upgrade Version 1.3 (12setup3.exe, 1.6 MB)
Revised Mar 31, 2013 — CPP for the self-employed earning over $50,100 was wrong.
Revised Apr 2, 2013 — The phone numbers at the bottom of T1-ADJ now format correctly and I killed the mislabelled-label error that can occur when you print the Provincial Schedule 11.

Clicking the link below takes you to Google Drive where you have to press the 'Download' button. You then go to a page telling you the file can't be scanned for viruses — press 'Download anyway'. Then a pop-up appears and you hit 'Save File'.

Download Upgrade Version 1.3
from Google Drive!

The sound files are huge and so have been separated out into their own install program. These are the same sounds as last year, so if you already did the download then all you have to do is copy the sounds into the Taxman2012 folder.
If you want the complete and total mystery tour, click below:

Taxman!   Taxman Sounds Version 10 (sounds10.exe, 5.2 MB)

Download Sounds Version 10 Now!

Pressing Download gets you the option of saving or opening the file — you want to save it.
After downloading, double-click sounds10.exe to install and be sure to change the destination folder to Taxman2012. When you open up Taxman, press Tools on the menu and then click at Sound on/off to turn the sound on.

    Announcing!       Fabulous New Features

Phone Numbers Now Include Area Code:
Some people have phone numbers with different area codes. To accommodate these jetsetters, each phone number on Persons will now include the area code. To make this effortless you just have to go to Tools\Data Transfer\Get Basics from past year, and the program will get the basics and add the area code to every phone number on Persons. This may not be the correct thing to do if someone in your database has multiple area codes, so double-check your data.

Schedule 4:
Net partnership income, Line 122, no longer appears on CRA's Schedule 4. I've still left it on my form, but moved it down to the bottom area that does not print.

Schedule 5:
Because of the new Family Caregiver Amount (FCA), you now must claim the spouse amount on Schedule 5. I've left a place on Schedule 1 to enter spouse's net income (which doesn't print), but you still have to fill in Schedule 5. The same is true for the eligible dependant amount at Line 305.
CRA's Schedule 5 no longer has a section for Line 331, medical expenses for other dependants. I've still have a Line 331 section, but it doesn't print.
This new FCA is a $2,000 deduction for any dependant with a physical or mental impairment. The FCA gets added on top of what you are already claiming at Lines 303, 305, 306, 367 or 315. In my reading of the rules for claiming at these lines, only Line 306 has changed from 2011. Before, a taxpayer could claim a dependant at Line 305 and again at Line 306. Now, you can't claim at Line 306 if you've already claimed at Line 305. This is not listed in "What's new for 2012?" at the beginning of CRA's guide — so tell you friends.
As things currently stand, there is a conflict between what's on the provincial worksheets and what's in the guide for all provinces except YT and QC. The worksheets have not changed from 2011 and they still have on them a line that lets you claim your dependant twice. But the guide says you have to follow the federal rules which prevent you from claiming your dependant twice. I've emailed CRA and we'll see what they say.
The answer was: go with the provincial worksheets. This means, except for YT and QC, if you claim at Line 5816 on your provincial tax form, you can still claim at Line 5820. So remember to fill in Schedule 5 at Line 306 regardless of the federal rules, and the program will give you the provincial claim but not the federal claim.

Schedule 12:
BC and ON have a Provincial Schedule 12: a senior's home renovation tax credit. In a shameless attempt to grab votes, two desperate governments are throwing a bone to some reliable voters. Only enduring and integral improvements to a principal residence are eligible, and they must allow a senior greater functionality or harm reduction.
This credit can be split between spouses, so if you double-click any of the labels at the top of the form, Taxman will bring in the data from your spouse's Schedule 12.

CPP Overpayment:
There's now a new variable for CPP overpayment: whether you elected to stop CPP contributions on employment income. This only applies if you were 65 to 70 years of age and receiving a CPP or QPP retirement benefit. On Worksheet there's a new control where you enter the elected date (year/month). Remember, this relates only to employment income.
On Schedule 8 you can elect to stop CPP contributions on self-employed income by entering the month number at Line 372. This only affects self-employed income which is irrelevant for CPP overpayment because if you're self-employed T2204 doesn't apply and there is no CPP overpayment. That said, if there is no employment income and the elected month to stop CPP contributions for self-employed income is January, then no CPP on self-employed income is payable so you must override line 1 on Schedule 8 and make it zero. And you must get the latest Upgrade or else you must manually print out Schedule 8.

EI Overpayment:
Schedule 13 now matters for EI overpayment, so after you've changed Schedule 13 return to Worksheet and hit Update again to recalculate any overpayment.
For Quebecers, the calculation for EI overpayment on Schedule 10 now differs from the calculation on Form T2204. Therefore, according to the rules, the EI overpayment at the bottom of Schedule 10 will only work if there's a value at Line 377.

                  Bugs and Version History

It took four years to get three-fourths of the states to ratify it, but finally in 1913 the Sixteenth Amendment was added to the US Constitution. The US government was forced into this amendment to give itself unfettered "power to lay and collect taxes on incomes, from whatever source derived." Even way back then they needed the money, and they knew an income tax was one way to get it. And you would think that after a century of income tax they'd have figured it all out by now — but they're still wringing their hands over it. Today the Sixteenth Amendment would never get passed, our forefathers were made of sterner stuff.

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