How do you stop the automatic Schedule 2 transfers fo 2 low income spouses/seniors with connected returns - specifically the age credit

[AjaxT]

How do you stop the automatic transfer on schedule 2: transfers of the age credit between connected returns for 2 low income seniors spouses? They do not need to transfer the age credit as their own personal credit is enough to eliminate any taxes payable.

The automatic transfer causes the following issue:

When the children of these two seniors claimed the Disability Tax Credit for their parents, CRA disallowed them because the parents have "an amount" on line "32600 - Amounts transferred from your spouse or common-law partner".

I know there's an option to "Override" in schedule 2. However, this will prevent the tax returns from using EFILE.

Thank you for your help,

[TurboTaxAniqua]

TurboTax's "Optimizer" engine is designed to prioritize the household's lowest bottom-line tax, which often comes at the expense of secondary claims such as a child's eligibility for the Disability Tax Credit (DTC).

The CRA's logic states that if a senior has any unused credits, they must be transferred to a spouse (Line 32600) before being "shipped" to a child (Line 31800). If Line 32600 has a value, the CRA assumes the spouse is the primary supporter, thereby disqualifying the child.

Try this workaround: Switch to Forms Mode (icon at the top).

Open Schedule 2 for the spouse who is receiving the credit.

Look for a checkbox at the top or bottom that says "Tick here to not claim the transfer" or "Do not calculate." This is a formal "Election" rather than a hard override, and usually does not allow Netfile.

If you are still not able to resolve this issue, please contact our phone support team at 1-888-829-8608.

Thank you for choosing TurboTax.

[AjaxT]

Hi there @TurboTaxAniqua ,

Unfortunately, when I opened Schedule 2 in "Form", there's no option/checkbox neither at the top nor the bottom on the form to select "Tick here to not claim transfer/Do not Calculate".  Is there a special "keyboard combination" to use to show this option?

I think I'm not the only one who runs into this issue.  Therefore, if you provides the solution here, it will help others as well.

Thanks,

[TurboTaxAniqua]

We recommend that you contact our product support team by phone. 

https://turbotax.community.intuit.ca/turbotax-support/en-ca/help-article/tax-return/contact-us/L1h8P...

They have access to tools that we do not have in the Community, such as screenshare, and can identify issues to escalate into an investigation if necessary.

Please let us know how the results turned out. 

[AjaxT]

Hi There @TurboTaxAniqua ,

After contact the supporting team by phone for 1 hour 25 minutes, they were unable to resolve this issue.

"Your TurboTax Case  [phone number removed]1 is Closed".  

I'm extremely disappointed that TurboTax doesn't accept/acknowledge that this is an on-going software error/issue.  I'm pretty sure that I'm not the only one to have this problem.  I mentioned that I tried to use a TurboTax's competitor (*****) software and didn't have this issue.  I asked for a partial refund to cover the cost of using the competitor software in order to resolve this issue but TurboTax refused that too.

Overall, a disappointment......