Your RRSP deductions

What’s in this article?

 

What is this?

You can deduct your Registered Retirement Savings Plan (RRSP) contributions on your taxes. You can deduct the contributions you made during two specific time periods:

  • March 2nd – December 31st of the current tax year
  • January 1st – March 1st of the current calendar year

For example: If you are filing your taxes for tax year 2015, you will enter the amount that you contributed to your RRSPs from March 2nd – December 31st 2015, and the amount that you contributed to your RRSPs from January 1st to March 1st of 2016.

The maximum amount that you can deduct off your taxes every tax year is based on your RRSP deduction limit. You can find this amount in a few places:

  • On your Notice of Assessment - Amount (A) issued to you by the Canada Revenue Agency (CRA).
  • On your T1028 : Your RRSP Information that the CRA sends to you after processing your previous year’s income tax and benefit return
  • In My Account (on the CRA website)
  • In MyCRA (CRA’s mobile application)
  • By contacting TIPS (Tax Information Phone Service) - 1-800-267-6999

 Canada Revenue Agency (CRA) says…

If we reassess a previous year’s income tax and benefit return, your revised 2014 RRSP deduction limit will appear on your notice of reassessment or in some cases on a T1028, Your RRSP Information for 2014. We will also send you a T1028 with a new RRSP deduction limit if your RRSP deduction limit has changed for reasons other than a reassessment of a previous year’s income tax and benefit return.

You can choose to deduct some or all of your RRSP contributions, up to the maximum amount of your RRSP deduction limit. If you deduct only some of your RRSP contributions, you can carry forward the amount that you do not deduct to reduce your tax liability in a future tax year.

Tax tip: Ideally, you want to claim enough of your RRSP contributions to reduce your tax owing to zero dollars. Any amount beyond that can be carried forward.

 

Am I eligible?

Canada Revenue Agency (CRA) says…

Generally, the amount you can contribute to your RRSPs or your spouse or common-law partner's RRSPs, for a given tax year without tax implications is determined by your RRSP deduction limit. This is often called your "contribution room." Amounts that you contribute above this limit may be considered excess contributions (over-contributions).

Your RRSP deduction limit is the amount of RRSP contributions that you can deduct on your tax return for a given year.

Generally, amounts you transfer directly to your RRSP do not affect your RRSP deduction limit. However, you may need to include an amount in income and claim an offsetting deduction.

 

Revenu Quebéc says…..

The amount you can deduct for contributions that you made to your registered retirement savings plan (RRSP), to a spousal RRSP or to a pooled registered pension plan (PRPP), including a voluntary retirement savings plan (VSRP), corresponds to the RRSP or PRPP deduction entered on line 208 of your federal income tax return.

If the amount on line 208 of your federal income tax return includes amounts deducted as a transfer, do not take such transfers into account on line 214. Enter them on line 250 instead.

Important: In the federal income tax return, the term “pooled registered pension plan (PRPP)” refers to both PRPPs and VRSPs.

 

 

How do I claim this?

Note: For both Revenu Québec and Revenue Canada tax returns, you will only enter your RRSP deduction amounts into your federal tax return. If applicable, the amounts from the federal return will automatically be transferred into your Revenu Québec tax return.

 

Follow these steps in H&R Block’s tax software to file your 2015 taxes:

1. Click the PREPARE tab.
2. Click the YOUR YEAR IN REVIEW link. You will find yourself here:


3. Click the checkbox labelled I contributed to an RRSP/PRPP or have unused contributions.
4. Scroll to the bottom of the page and click Continue.
5. Click the RRSPS & INVESTMENTS icon. You will find yourself here:


6. Under the RRSPS heading, click the checkbox labelled Contributions to RRSPS or any other retirement fund or account (Schedule 7).
7. Scroll to the bottom of the page and click Continue.

When you arrive at the page for Contributions to RRSPs or any other retirement fund or account, enter your information into the tax software.

Note: To add additional RRSP contribution amounts, click the +Add Another RRSP Contribution button located on your screen.

 

Where can I learn more?