Ufile vs. Turbotax - Accountants or tax professionals please help

[utelurtz]

It is really frustrating and I need tips.
I help file taxes for non-residents. First I did it with Turbotax.
Now I bought Ufile.

Income is only from T4.
Did you know that the two softwares use a different way of calculating non-resident tax?
And of course the calculations result in different figures!!!

Turbotax calculates a surtax of 48% on the federal tax (which is according to the tax guide, and in my opinion the right way).
Ufile generates a form T2203 where it calculates provincial tax.

As far as I know, the T2203 is only for business income.

Is there somebody who can help out?

Contacting the support of Ufile did not bring any clarifications. They said I should contact CRA to determine the status in Canada. That was not part of my problem
But what if Ufile calculates taxes the wrong way?

 

[jes_ON]

It is really frustrating and I need tips.
I help file taxes for non-residents. First I did it with Turbotax.
Now I bought Ufile.

Income is only from T4.
Did you know that the two softwares use a different way of calculating non-resident tax?
And of course the calculations result in different figures!!!

Turbotax calculates a surtax of 48% on the federal tax (which is according to the tax guide, and in my opinion the right way).
Ufile generates a form T2203 where it calculates provincial tax.

As far as I know, the T2203 is only for business income.

Is there somebody who can help out?

Contacting the support of Ufile did not bring any clarifications. They said I should contact CRA.
But what if Ufile calculates taxes the wrong way?

I'm not a professional, but I have compared the two, and yes, they do typically give different results. They are both certified products, so both are equally acceptable, but there is still plenty of room for user error. I personally prefer U-File (I get better results with U-File than with TurboTax), but it is more demanding on the user. Just knowing U-File, my guess is there is an error that needs to be corrected somewhere. Go back to the interview set up and see if the foreign income box is checked - uncheck it if appropriate. If you need to keep that checked, go to the foreign income section and make sure that there is nothing under "foreign business income."

 

[jes_ON]

I have to ask also, what kind of "non-resident" are you?

 

[BigBee]

Hi Jes_On.... one query.... if I am a non-resident (for taxation purpose), I cannot online file my tax, in that case how will I use the tax software like U-file?

I have been filing taxes through tax consultant till last year but wanted to know if I can file taxes myself...

 

[jes_ON]

Hi Jes_On.... one query.... if I am a non-resident (for taxation purpose), I cannot online file my tax, in that case how will I use the tax software like U-file?

I have been filing taxes through tax consultant till last year but wanted to know if I can file taxes myself...

You can use the software either on your PC or online, and print out the paper return to sent by mail -

 

[BigBee]

You can use the software either on your PC or online, and print out the paper return to sent by mail -

thanks Jes_on.... on the related query....

1. I stayed less than 183 days and hence I am non-resident of Canada
2. I am receiving only CCTB and UCCB and dont work anywhere (my spouse does though)
3. My spouse stayed less than 183 days and have two T4 (two different employers)
4. We are expecting some tax returns as the employer deducted too much tax

Given this, do you think I can do this myself (i have very basic tax knowledge) or should i consult a accountant to get appropriate tax returns?

 

[utelurtz]

I have to ask also, what kind of "non-resident" are you?

I help others with filing taxes.

And thanks for the reply.
There is no tick in foreign income, nor have I entered any.

I tried to tell Ufile support about the error, but they keep telling me that as a non-resident you have to pay provincial taxes, so the form will be generated automatically. Which is not true.

Well, then I have to say goodbye to Ufile.

 

[Rosie1957]

"I tried to tell Ufile support about the error, but they keep telling me that as a non-resident you have to pay provincial taxes..."

I'm in my 14th season preparing Canadian taxes. Ufile support is definitely out to lunch on this point! Non-residents definitely pay the 48% in lieu of paying provincial taxes.

 

[utelurtz]

"I tried to tell Ufile support about the error, but they keep telling me that as a non-resident you have to pay provincial taxes..."

I'm in my 14th season preparing Canadian taxes. Ufile support is definitely out to lunch on this point! Non-residents definitely pay the 48% in lieu of paying provincial taxes.

Thank you for confirming this. I cannot get this message through to Ufile. I gave it up. Do you think I should report this error to the CRA, as the Ufile software is accredited by the CRA.

 

[Rosie1957]

The CRA might or might not listen, but it would definitely be worth a try and might save other non-residents some trouble.

 

[joanneatufile]

I am sorry that we did not come across this forum earlier.

UFile has its own community forum for questions such as this, which is monitored by our tax experts. In any case, here is the UFile response to the original query:

According to the CRA Non-resident guide T4058(E) Rev. 13:

Calculating your taxes payable

If you are reporting income from employment in Canada or
from a business with a permanent establishment in Canada,
you will pay federal tax on that income plus tax to the
province or territory where you earned the income.

If you are also reporting other types of Canadian-source
income (such as taxable scholarships, fellowships,
bursaries, research grants, capital gains from disposing of
taxable Canadian property, or from a business with no
permanent establishment in Canada), you will pay federal
tax on that income plus the surtax for non-residents and
deemed residents of Canada. If this is the case, complete
Form T2203, Provincial and Territorial Taxes for 2013 –
Multiple Jurisdictions, to calculate your taxes payable.

The UFile calculation in this regard is correct. If the taxpayer has a T4 for employment income and another type of income such as Canadian source capital gains then UFile is most definitely doing the calculation correctly by making her employment income subject to provincial tax and the capital gain subject to the non-resident surtax.

Please respond in our Forum or use our contact us form to get in contact with one of our experts in this field. Both are available on the UFile website (unable to post links ) Please mention Joanne B. suggested that you contact us for more clarification and an expert review of your case.