If you contributed to a pooled registered pension plan (PRPP) with tax-exempt income during the year, you’ll need to report your contributions on the RC383 page in H&R Block’s tax software. This helps the Canada Revenue Agency (CRA) track your contributions, their use, and calculate the non-deductible PRPP contribution room on your tax-exempt income for the year.
Contributions you make to a PRPP with tax-exempt income aren’t deductible for income tax purposes, but they can be used as repayment under the Home Buyers Plan (HBP) or the Lifelong Learning Plan (LLP).
As of 2013, if you have Indian status under the Indian Act, the tax-exempt income you earn and contribute to a PRPP can be included in the calculation of your non-deductible PRPP limit. This includes income you earned from the following sources:
- Working or running a business on a reserve
- Rental income
- Farming or fishing
- Research grants
- Unemployment benefit plans
- Wage earner protection plan payments you’ve received
- Interest and investment income
On your T4, you can find your gross tax-exempt income from employment in box 71, and your tax-exempt self-employment income in box 88. If you didn’t receive a T4, you’ll have to calculate your gross tax-exempt income before any deductions (from your business, rental, farming, fishing, or commissions) with the other slips you receive.
Note: H&R Block’s tax software will automatically use some of the information entered on your Schedule 7: Contributions to a pooled registered pension plan (like the tax exempt contributions you made to your PRPP/VRSP) to complete the RC383 page of your return.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
- On the PREPARE tab, click the LET'S TALK ABOUT 2016 icon.
- Select the checkbox labelled I contributed to a PRPP or non-Canadian pension plan.
- Click the PENSION PLANS AND INVESTMENTS icon. You’ll find yourself here:
- Under the PRPP heading, select the checkbox labelled Tax-exempt earned income and contributions for a pooled registered pension plan (RC383), then click Continue.
- When you arrive at the page for the Tax-exempt earned income and contributions for a pooled registered pension plan, enter your information into the tax software.