☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Mar 16, 2020 6:31:38 AM

Box 66 and 67 on T4 with RRSP Contributions how do I handle them

I received a lump sum settlement from my employer in Jan 2020.  $5K Ineligible and $10K eligible pursuant to 60(j) due to years serviced prior to 1995.  My bank then took the $5K and $10K and put them in RRSPs.  

 

Doing my 2019 taxes, I logged both the $5K and $10K as RRSP contributions for the first 60 days of 2020.  I then told TurboTax to carry forward the $10K so I can use that $10K to offset box 66 ($10K) in my 2020 tax return when I do it next year.  The $5K I left alone as I had room for it in my 2019 submission.

 

Question is how will the $5K Box 67 get treated next year when I do my 2020 taxes?  I already contributed and used the $5K deduction.

 

Thanks

0 1 584
1 Replies
Level 15
Apr 9, 2020 2:49:50 PM

If you have already reported the $5k contribution and used it as a deduction, when you receive your 2020 T4, Box 67 will be added to your income. 

 

You will report the $10k contribution in TurboTax as a "Designated Transfer" and it will not affect your RRSP Deduction Limit.

 

To sum things up:

  • The amounts from Box 66 and Box 67 will be both added as income on Line 13000 of your tax return.
  • The amount from Box 66 (Eligible Retiring Allowances) will be deducted on Line 20800 as an RRSP Deduction, but only if you specify in TurboTax that this is a Designated Transfer.
  • The amount from Box 67 (Non-Eligible Retiring Allowances) will be added to your income as you have already claimed it as an RRSP Deduction the prior year.