GST credit and OTB are not being correctly calculated for new immigrants

This situation applies to new immigrants who had income for the part of the year before they became residents of Canada. Although the field is available in the "Info" tab, specifically on the box 5293, this amount is not being taken in consideration on GST credit and Ontario Trillium Benefit calculations, as it should. As a result, some clients with this type of income end up getting unrealistic expected amounts from the automated letter generated by the system.

Has anyone had the same issue? Am I doing something wrong?

Answer

Hi, thank you for using Intuit ProFile Community

You are correct in your description of the issue. For part year residents (immigrants), lines 5292 and 5293 are strictly information fields not tied to any forms on the T1. Those two fields are only used to determine  proration necessary for non refundable credits. The GST calculation is only an estimation and the GST information in ProFile is not transmitted to the Canada Revenue Agency(CRA).

ProFile does not at this time adjust for income earned before becoming a resident of Canada. CRA does provide the rc151 for immigrates to apply for GST. This form contains the information CRA needs to calculate the GST credit.

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc151.html

Hope this helps

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