In addition to providing for your future, contributing to an RRSP/PRPP can have a big impact on reducing the amount of tax you have to pay. It might also surprise you to learn that you don’t always need to claim the entire amount you contributed in a given year in order to maximize your return.
For example:
In 2015, Katie contributed a total of $2,500 to her RRSP. While completing her return, she realized that she only needed to claim $1,500 of her contributed amounts to reduce her tax owing to zero. That means Katie now has $1,000 of unused RRSP contributions that she can carry forward for use in a future year ($2,500 - $1,500 = $1,000). Using H&R Block’s tax software, Katie can enter $1,000 into the following field on the Contributions to RRSPs or any other retirement fund or account (Schedule 7) page:
Note: To find out what your unused contribution amount is for 2016, refer to line B of your 2015 Notice of Assessment, Notice of Reassessment, or form T1028 (if applicable).
If you prefer, you can withdraw your unused contributions. If you decide to do this however, you will have to include this amount as income on your return. Click here for more information on what to do with unused RRSP/PRPP contributions.
Where can I claim this?
Follow the steps in H&R Block’s tax software to file your 2016 taxes:
- On the QUICK ENTRY tab, click the QUICK SLIP icon. You will find yourself here:
- Type Unused RRSP contributions in the search field and either click the highlighted selection or press Enter to continue.
- When you arrive at the page for your Schedule 7: RRSP contributions and HBP or LLP repayments, enter your unused RRSP/PRPP contributions into the tax software.
