Filing Your Return -> RRSPs -> RRSP Contribution Not Recorded Last Year
RRSP Contributions Not Recorded on Previous Year Tax Return. What Now?
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 1, 2016 to March 1, 2017, this should have been included on Schedule 7 which was filed with your 2016 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 2016 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. See our article on changing your return. If you only want to record the contributions, and not claim a higher RRSP deduction, you will be requesting a change to line 245. This is the line for total contributions made from March 1, 2016 to March 1, 2017, or the equivalent period if you are doing years prior to 2016. If you are doing this online in "My Account", just search for the phrase schedule 7 when you get to the page that asks you to "Enter text or line number, or select a section." This will bring up the lines available to be changed from Schedule 7.
You then have 2 options regarding your 2017 tax return:
1. Wait for the reassessment notice for your 2016 tax year before filing your 2017 tax return (as long as you can still file for 2017 by April 30th), including the 2016 contribution as a carry-forward from 2016, or
2. File your 2017 tax return without the carry-forward from 2016, and subsequently file a form T1Adj (as above, can be done online) requesting a change to your 2017 tax return to include the carried-forward contribution from 2016, and to claim the RRSP deduction.
Canada Revenue Agency (CRA) Resources:- Schedule 7 RRSP Unused Contributions, Transfers, and HBP or LLP Activities - explains when this schedule has to be completed
- General Income Tax and Benefit Guide, search for "how to complete Schedule 7".
- Get that T1Adj done as soon as possible, to avoid delays with the upcoming tax return!
- Make sure you report your RRSP contributions in the first 60 days on the tax return for the prior year!
Revised: April 06, 2018
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca