Turbotax Netfile Error Code 95365

[wsue251]

This error also happens if you have a capital loss entered from a T5008 slip.

This Netfile error code 95365 from CRA is not a CRA problem but rather an issue with Turbotax when entering T3 & T5008 receipts. Especially when the T5008 is a capital loss amount.

My tax setup is that I do income splitting with my spouse.

Test Steps:

1. I enter in Turbotax the T3 slip with box 21 & box 53 with positive values (ie. 42) and I check the T936 form, line 68140 and Sched 3, line 17600, both are populated with the same values (ie. 42).

     2. Now I enter in Turbotax the T5008 slip with box 20 & 21 resulting in a capital loss amount, when I check             the T936 form, line 68140 is changed to 0 and Sched 3, line 17600 is populated with the same value                   (ie.42).

     3. When I delete the T5008 entry or enter T5008 box 20 & 21 values resulting in a capital gain amount and

          check the T936 form, line 68140 and Sched 3, line 17600, both are populated with the same correct                     values (ie.42).

So not a CRA Netfile issue but rather a problem with Turbotax populating the T936 field incorrectly on a T5008 capital loss scenario. 

[Anne04]

I just got off the phone with a specialist too (and was joined from someone from a 'higher department').  They say it will not be fixed by Wednesday as they told me initially when I talked to them Sunday.  They do not have an estimated resolution time yet.   But they definitely know it is a Turbotax software issue.  In my session with them, I even deleted my capital loss (well made it a gain) and the line 68140 was populated.  They probably were not aware of this issue (or completely understood it) because the CRA was issuing this same error  erroneously and was only fixed April 7th.   

Also I tested in my Turbotax 2023 (by entering a loss) and the issue did not exist then so it is new. 

Bugs happen.  And this probably only happened because of the big change they had to make to their software to handle the split of Capital Gains into 2 periods (which was then cancelled)  by the Federal Government. But it is taking them awhile to fix (at least from my perspective having worked in IT all my working career).  Hopefully they will add this scenario to their suite of test cases.

I think I will still use TurboTax in the future.  I like using last year's information to start this year's return.

Fingers crossed for a fix soon.

[GordoD]

Interesting, as my case is, in fact, a T5008 capital loss scenario whereby the T936 form isn’t being populated correctly and further confirms what people are suggesting in the forum.

Good investigative work on people’s part.

[JLA146]

Thanks for the update!

I understand that Bugs happen in programming. What I don't understand is the lack of communication from Turbo Tax when they know they have had the issue and for at least 2 weeks since I called first and was added to their email list. On the list of CRA errors, they are still listing 95365 as fixed April 7th - when they since at least the 13th that it is not fixed. Their email to me this afternoon still calls it a CRA problem - which they know it is a Turbo tax programming issue.

[blues37326]

@TurboTaxSusan 

I received an email from Intuit around 2:30 Mountain time.  The substance of it is....

"As you heard last week, some customers have experienced a CRA systems error which impacted their ability to file their taxes. These errors are affecting all CRA certified tax software across Canada.

We have successfully advocated on your behalf and the CRA has announced it will proactively provide interest- and penalty-relief for individuals who experienced a CRA system error while trying to file taxes, the announcement can be found here.

You must attempt to file before April 30 to qualify for relief. Note, for those who get an error code while attempting to file before the deadline:

• If the CRA resolves the issue prior to the tax deadline, you must resubmit your tax filing by April 30 to avoid late-filing penalties.
• If the CRA is unable to resolve the issue prior to the deadline, you will qualify for relief.

Keep track of the latest updates on error code resolutions here.

Our Canadian engineers, product specialists and experts are all working to make sure you can still file your taxes with confidence and achieve your best outcome. We appreciate your patience as we work through the issues together. "

The issue is if you follow the link it does bring up the CRA error code site but 95365 is not shown in the list.

If Intuit says that we will not be subject to penalties how can they guarantee it when our issue is not listed by the CRA?

I understand that this is now a revolving door but with the concerns of late penalties how do we ensure that we are not subject to them.  The above email leaves the impression on first reading that all is well  and as long as we have tried to submit through Netfile but...if you look and see that the error code in this thread is not listed what then?  We've been told by Intuit it is being looked at by CRA, we have some evidence that the CRA does not believe this is an issue on their end anymore and we have no idea when or if it will be fixed,  It would be nice to get a definitive answer on what is happening or are we supposed to ensure that we keep all of the emails and posts to make sure that Intuit will be responsible for any charges or penalties?  Thanks in advance.

[leop]

This is my exact problem as well. Loss on T5008 and line 68140 on T936 not populating. Would appear to be a TT issue, BUT when I entered same information in Wealth Simple, same thing happened-Line 68140 doesn't populate.

So somehow CRA is involved. Maybe CRA and the tax filers software coordinated in some way such that this issue affects all tax filers.

Wherever the issue lies, it sure is frustrating!

[IslandRed]

Yep. I spent 2 hours on the phone with 3 different people at CRA this morning.  They don’t understand why line 68140 doesn’t populate when there is a capital loss on schedule 3.  Read line 14 on Chart A of the T936 closely.  Line 1 minus line 13 is reported as zero if the amount is negative (which is the case if you have a capital loss).  Then it says if zero DO NOT complete lines 15 to 19 (which includes line 68140).  The software follows this.  But then it says “if the total includes an amount from a T3 slip , complete lines 15 to 19. So if you have T3 capital gains included in your capital loss, then you are supposed to put them on line 68140.  The software does NOT follow this.  And here we are.

I was told that others have raised this with CRA.  I told them it won’t be fixed because error 95365 is shown as resolved. They made note of  that. Many apologies given. No timeline for resolution.

So what I did was to delete the T3 capital gains from my return by zeroing out the box 21 and box 52 and 53, which increases my capital loss. Doing this eliminates the netfile issue and I was able to successfully file.  Once the notice of assessment is received I will file an adjustment to add the missing capital gains if not picked up by CRA when they match slips. I filed a T1A to carry back the correct (lower) capital loss to a prior year.

[CM1965]

I don’t understand how this worked for you.  In the case of my daughter’s return she has no capital gains, only a capital loss.  All 100% attributed to her, so no spousal split.   It is not flowing from the T-slips to form 936 and as a result will not allow the return to be Netfiled.  How did yours go through?

[CM1965]

What I’m thinking of doing is removing the capital loss from the return by excluding the slips that have created it.  That should alleviate the 95365 issue and allow the return to be Netfiled.  Wait for the notice of assessment to see if it gets picked up by CRA.  If not, then either put it in next years return when presumably this will be fixed or try to make an edit to 2024 return through correspondence with CRA.  At least that will get these returns completed and off of my mind!  Thoughts?

[IslandRed]

My wife's return.  By eliminating the cap gains coming from the T3's, there was noting showing on line 17600, and then nothing to populate on line 68140.   My issue was the first of the 4 issues listed for the error code 95365.    This took me a month to figure out.

Maybe you are caught under one of the other 3?  Where does your capital loss arise?  T3?  T5013?  My capital loss was from a real estate transaction.