Revenu Quebec Netfile Error: Invalid Partnership Net Income

The Revenu Quebec NETFILE error message: Invalid Partnership Net Income may appear on the spousal return of a business partner when more than four other partners are listed on form TP-80-V, Income and Expenses Relating to a Business or Profession. 

In this case, the spouse receiving this error message is not a business partner, only their spouse with over 4 non-familial business partners is a partner. The spouse receives the error message with a small % and dollar value populated incorrectly on their T2125 form. The spouse with over 4 partners on their return is accepted by Revenue Quebec but their spouse cannot netfile even though they should not have a T2125 or partnership income.

To bypass the validation error and file the returns, follow these steps:

1. Modify the Spouse's Return Who Is Reporting Correctly Business Income
   • Open the spouse's tax return.
   • In their business statement, remove the last partner listed.
   • Change the "Percentage of partnership (%)" for any remaining partner to 40%. This will temporarily bypass the validation error without changing the spouse's income.
2. File the Taxpayer's Return
   • Go back to the primary taxpayer's return.
   • NetFile their T1 and TP1 returns. The submission should now be successful.
3. Correct and File the Spouse's Return
   • Return to the spouse's business statement.
   • Add the partner you previously removed back into the partnership details.
   • Adjust the partnership percentages to reflect the correct, original amounts for all partners.
   • You can now NetFile the spouse's T1 and TP1 returns (if the spouse's return has not yet been filed, otherwise they can skip this last step)