Does this screen look right to you? (RSP Contribution)

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Does this screen look right to you? (RSP Contribution)

Post by InvestorNewb »

Hello,

Looking to make sure I did this right.

My RSP deduction limit for 2016 is $10,009.

- In January 2016, I made an RSP contribution of $10,000 which I am deducting.
- In April 2016, I made an RSP contribution of $9 which I am also deducting to use up the remaining room.

- In January 2017, I made an RSP contribution of $10,000 which I will deduct next year.

Image

Image

Image

Despite this, UFile is giving me a warning saying that my RSP contribution exceeds my deduction limit by more than $2,000. I remember seeing the same warning last year.

Thanks!
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Re: Does this screen look right to you? (RSP Contribution)

Post by gobsmack »

InvestorNewb wrote: 25 Mar 2017 09:38 - In January 2017, I made an RSP contribution of $10,000 which I will deduct next year.
I think you should not be telling ufile about this one. I think you should only be adding to ufile the deductions you are planning to use in the current tax year.
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Re: Does this screen look right to you? (RSP Contribution)

Post by gobsmack »

OP, why are you using postimg.org? You should be able to post pictures here w/o relying on other sites. I am wondering if it will be safe for the readers to load those images.
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Re: Does this screen look right to you? (RSP Contribution)

Post by InvestorNewb »

gobsmack wrote: 25 Mar 2017 10:02
InvestorNewb wrote: 25 Mar 2017 09:38 - In January 2017, I made an RSP contribution of $10,000 which I will deduct next year.
I think you should not be telling ufile about this one. I think you should only be adding to ufile the deductions you are planning to use in the current tax year.
I didn't have any problems last year. You would think the software would be sophisticated enough based on the box that says "RRSP deduction to use in 2017".
gobsmack wrote: 25 Mar 2017 11:09 OP, why are you using postimg.org? You should be able to post pictures here w/o relying on other sites. I am wondering if it will be safe for the readers to load those images.
The images are too wide for the forum. The web site is safe and there are no pop up ads.
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Re: Does this screen look right to you? (RSP Contribution)

Post by InvestorNewb »

Does anyone else see any issues? I plan on filing soon.
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Re: Does this screen look right to you? (RSP Contribution)

Post by adrian2 »

gobsmack wrote: 25 Mar 2017 10:02
InvestorNewb wrote: 25 Mar 2017 09:38 - In January 2017, I made an RSP contribution of $10,000 which I will deduct next year.
I think you should not be telling ufile about this one. I think you should only be adding to ufile the deductions you are planning to use in the current tax year.
That's definitely bad advice.
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Re: Does this screen look right to you? (RSP Contribution)

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InvestorNewb wrote: 27 Mar 2017 09:24 Does anyone else see any issues? I plan on filing soon.
TurboTax can handle these scenarios easily. I have no experience with uFile.
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Re: Does this screen look right to you? (RSP Contribution)

Post by gobsmack »

adrian2 wrote: 27 Mar 2017 11:30
gobsmack wrote: 25 Mar 2017 10:02
InvestorNewb wrote: 25 Mar 2017 09:38 - In January 2017, I made an RSP contribution of $10,000 which I will deduct next year.
I think you should not be telling ufile about this one. I think you should only be adding to ufile the deductions you are planning to use in the current tax year.
That's definitely bad advice.
Oops... sorry for the bad advice then. I will take a 2nd stab: If you go all the way to the end, ufile will generate a PDF with your tax forms. Perhaps if you check out the numbers as they are being reported in the final PDF, you will figure out what went wrong.
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Re: Does this screen look right to you? (RSP Contribution)

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gobsmack wrote: 27 Mar 2017 11:42 Oops... sorry for the bad advice then. I will take a 2nd stab: If you go all the way to the end, ufile will generate a PDF with your tax forms. Perhaps if you check out the numbers as they are being reported in the final PDF, you will figure out what went wrong.
:thumbsup:
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Re: Does this screen look right to you? (RSP Contribution)

Post by AltaRed »

The UFile RRSP form looks straight forward to me. So don't get what the problem is. In Image 1, you are deducting $10000 for a $10000 contribution in 2016 for 2016. Good so far. Then in Image 2, you add another $9 for a further contribution made Mar-Dec 2016. Also good so far.

But also in Image 2, why are you adding a further $10,000 in the "first 60 days of 2017....as a 2016 Contribution"? That now says you are trying to deduct $20009 in total for 2016 when you only have $10009 deduction room. IMO, that latter $10000 in Image 2 should be a zero.

If you have indeed made a further $10000 in contribution in 2017 towards a 2017 deduction.... there is actually no place on the UFile data entry form to actually put that information.
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Re: Does this screen look right to you? (RSP Contribution)

Post by adrian2 »

AltaRed wrote: 27 Mar 2017 12:38 If you have indeed made a further $10000 in contribution in 2017 towards a 2017 deduction.... there is actually no place on the UFile data entry form to actually put that information.
In TurboTax, Schedule 7 would have to be filled out, via another screen called RRSP Worksheet.
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Re: Does this screen look right to you? (RSP Contribution)

Post by AltaRed »

adrian2 wrote: 27 Mar 2017 12:56
AltaRed wrote: 27 Mar 2017 12:38 If you have indeed made a further $10000 in contribution in 2017 towards a 2017 deduction.... there is actually no place on the UFile data entry form to actually put that information.
In TurboTax, Schedule 7 would have to be filled out, via another screen called RRSP Worksheet.
The UFile RRSP/PRPP/VRSP form doesn't bother the taxpayer with irrelevant data entries :wink: :P IOW, it matters not to 2016 taxes what the taxpayer does towards 2017 taxes (such as a first 60 day 2017 RRSP contribution towards a 2017 deduction).
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Re: Does this screen look right to you? (RSP Contribution)

Post by adrian2 »

AltaRed wrote: 27 Mar 2017 13:20 The UFile RRSP/PRPP/VRSP form doesn't bother the taxpayer with irrelevant data entries :wink: :P IOW, it matters not to 2016 taxes what the taxpayer does towards 2017 taxes (such as a first 60 day 2017 RRSP contribution towards a 2017 deduction).
http://www.taxtips.ca/filing/rrspnotclaimed.htm
It is necessary to include all RRSP contributions made in the first 60 days of the current year on Schedule 7 of the tax return for the past tax year.

You may have made an RRSP contribution in the previous year, but didn't record this on your return.

If you made RRSP contributions from March 3, 2015 to February 29, 2016, this should have been included on Schedule 7 which was filed with your 2015 tax return. If you omitted any of the RRSP contributions during that period from Schedule 7, you will have to file an adjustment to your 2015 tax return. You should be able to file a T1Adj online without submitting receipts, and if Canada Revenue Agency wants to see copies of the receipts they will request them from you.
Five RRSP mistakes you should avoid
FIRST 60-DAY CONTRIBUTIONS

Reporting RRSP contributions on a calendar year basis is wrong. Your tax return is designed to report the contributions you make from March 2, 2010 to March 1, 2011.

Receipts for contributions in the first 60 days of 2010 should have been reported on your 2009 tax return.
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Re: Does this screen look right to you? (RSP Contribution)

Post by Peculiar_Investor »

From my quick review of the captures that the OP has posted it seems like the data has been entered correctly. I would suggest that the OP should review the generated Schedule 7 to understand how the input amounts have been applied to the actual tax schedule.

If everything looks correct on Schedule 7, then file it and report a bug back to UFile.
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Re: Does this screen look right to you? (RSP Contribution)

Post by AltaRed »

I do not believe so. UFile is clear that you only record Jan-Feb 2017 contributions that are meant to go towards the 2016 tax year.

The very first line of the tax tip quote Adrian supplied is all about 'the past tax year, i.e. 2016'. That has nothing to do with contributions in Jan-Feb 2017 made for the current (2017) tax year. Read the line carefully!!!
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Re: Does this screen look right to you? (RSP Contribution)

Post by InvestorNewb »

Thanks for the responses.
AltaRed wrote: 27 Mar 2017 12:38 But also in Image 2, why are you adding a further $10,000 in the "first 60 days of 2017....as a 2016 Contribution"? That now says you are trying to deduct $20009 in total for 2016 when you only have $10009 deduction room. IMO, that latter $10000 in Image 2 should be a zero.
I put this here because I saw "First 60 days of 2017" but didn't quite notice or pay attention to the smaller text "as a 2016 Contribution". I did the same thing last year and didn't encounter any issues with CRA.

Given that I have the next box that says "RRSP deduction to use in 2016" filled in with the appropriate amount, I think I'm fine because I am not trying to deduct $20,009. I am only deducting $10,009.

Also: I feel that if I put 0 in the box that says "First 60 days of 2017" that CRA won't carry this amount over when I file my 2017 return.
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Re: Does this screen look right to you? (RSP Contribution)

Post by Peculiar_Investor »

AltaRed wrote: 27 Mar 2017 14:20 I do not believe so. UFile is clear that you only record Jan-Feb 2017 contributions that are meant to go towards the 2016 tax year.

The very first line of the tax tip quote Adrian supplied is all about 'the past tax year, i.e. 2016'. That has nothing to do with contributions in Jan-Feb 2017 made for the current (2017) tax year. Read the line carefully!!!
I thought the same thing, but if you read the help text and corresponding CRA guides, I believe the OP is doing things correctly and the UFile text is actually misleading.

Ultimately it's not the input forms that matter, review Schedule 7 and make sure it makes sense.
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Re: Does this screen look right to you? (RSP Contribution)

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AltaRed wrote: 27 Mar 2017 14:20 I do not believe so. UFile is clear that you only record Jan-Feb 2017 contributions that are meant to go towards the 2016 tax year.
Then UFile is a bad piece of software which does not cater for a scenario that may not be the most common, but is still a very normal one (likely the majority scenario for FWF folks).
The very first line of the tax tip quote Adrian supplied is all about 'the past tax year, i.e. 2016'. That has nothing to do with contributions in Jan-Feb 2017 made for the current (2017) tax year. Read the line carefully!!!
For CRA, there is no such thing as contributions in Jan-Feb 2017 made for the current (2017) tax year.
There are contributions, period.
Some of them you may wish to deduct at the first available opportunity (i.e., when you file the tax return which includes the contribution), some of them you may decide not to deduct (most likely because you had no room in the tax return you're filing, but not necessarily only because of that).

Bottom line:
1. you should declare all contributions as instructed, including the first 60 days of 2017 in the 2016 tax return.
2. if you wish not to deduct them (or if you cannot), fill out Schedule 7.

You should not file the Jan-Feb 2017 receipts in a drawer and include them next year. That may have been the case decades ago, but not now.
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Re: Does this screen look right to you? (RSP Contribution)

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InvestorNewb wrote: 27 Mar 2017 14:30 Also: I feel that if I put 0 in the box that says "First 60 days of 2017" that CRA won't carry this amount over when I file my 2017 return.
Absolutely.
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Re: Does this screen look right to you? (RSP Contribution)

Post by DavidR »

Agree with Adrian and PI - you are supposed to report an RRSP contribution made in the first 60 days of 2017 whether or not you deduct it in 2016. Schedule 7.


Side Note: A real life example of RRSP contribution info 'uploaded' by Financial Institution to CRA My Account - for my son in the 2015 tax year. On April 1, 2016 CRA processed the following RRSP contribution receipt for 2015 tax year. Here is how it shows on My Account:
*Amount Prior year $X
** Amount Current year $Y
*$X matched the RRSP contribution receipt received in the mail for period Mar 3 to Dec 31, 2015.
**$Y matched the RRSP contrib recpt received for Jan 1 to Feb 29 2016.
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Re: Does this screen look right to you? (RSP Contribution)

Post by AltaRed »

To my recollection, I've never had an issue NOT reporting Jan-Feb contributions for the upcoming tax year. That said, I've not often had RRSP contribution room so it was a moot point. ....C'est la vie.
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Re: Does this screen look right to you? (RSP Contribution)

Post by Peculiar_Investor »

AltaRed wrote: 27 Mar 2017 16:21 To my recollection, I've never had an issue NOT reporting Jan-Feb contributions for the upcoming tax year.
Found while researching an answer for another topic, from RRSPs and Other Registered Plans for Retirement (their bold)
CRA wrote:Lines 2 and 3 – Total RRSP and PRPP contributions

This total includes amounts you:
  • contributed to your own RRSP from March 1, 2016 to March 1, 2017;
  • contributed to your spouse or common law partner’s spousal RRSP from March 1, 2016 to March 1, 2017;
  • contributed to your account, or your spouse's or common-law partner's account, under an SPP from March 1, 2016 to March 1, 2017;
  • contributed to your PRPP from March 1, 2016 to March 1, 2017 (do not include your employer’s PRPP contributions);
  • transferred to your own RRSP (see Line 15 – Transfers); and
  • designated as HBP or LLP repayments (see Lines 6 and 7 – Repayments under the HBP and the LLP).
Include on these lines all contributions you made from January 1, 2017 to March 1, 2017, even if you are not deducting or designating them on your income tax and benefit return for 2016. Otherwise, we may reduce or disallow your claim for these contributions on your income tax and benefit return for a future year.
Read the last sentence carefully. I won't give CRA an out that would allow them to reduce or disallow my claim.
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Re: Does this screen look right to you? (RSP Contribution)

Post by AltaRed »

My faux pas. I am obviously still learning (though have not made an RRSP contribution or deduction for some time).

Funny thing is that no one has reported that 'glitch' on UFile Support Community the last time I looked, nor have I seen in in previous years.
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Re: Does this screen look right to you? (RSP Contribution)

Post by Peculiar_Investor »

I'm only becoming familiar with the issue because I'm the family tax preparer. I'm currently working on my CPA son's tax return using UFile and he just recently received a RRSP tax slip covering the Jan-Feb 2017 period.
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Re: Does this screen look right to you? (RSP Contribution)

Post by DavidR »

Shouldn't the CPA son be working on yours? :wink:
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