T4RIF Deceased Income

[RandoMagnificent]

When my wife passed away, I rolled her RRIF's over into my RRSP's.  The company produced a T4RIF showing a portion of the funds as being paid out to the deceased in Box 18, and an excess amount equal to her RIF income (Box 16) and deceased amount (Box 18).  

TurboTax doesn't allow me to enter the Box 24 amount, and is counting Box 18 amount as taxable income.  I also received receipt for deposit to my RRSP for this amount.  Can I net the two forms out, so there are no additional taxes on her estate?

[TurboTaxKim]

Sorry for your loss. Here's how to report this transfer in TurboTax.

When a spouse passes away and their RRSP or RRIF is transferred to the surviving spouse, you should have two tax slips - a T4RSP or a T4RIF showing a withdrawal amount, then a corresponding "Contribution Slip" (or receipt) showing the direct transfer which is exempt due to subparagraph 60(l)(v). Both these slips need to be reported on the tax return of the surviving spouse. 

Report the T4RSP or T4RIF as income (Income > Tax Slips > choose the slip you have then proceed to that screen and enter the corresponding boxes). The Total Income will reflect the amount of the transfer but do not worry, this amount will be deducted in the next section to arrive at the Net Income.

Then enter the RRSP or RRIF receipt as an "RRSP Contribution" in the RRSP Profile section. You need to specify on the RRSP Contribution screen that this was a "designated transfer of on eligible income amount".

You should be able to enter the amount shown in Box 24 of the T4RIF, but if you are still having an issue making this entry, please reach out directly to our Support Team for further assistance. You can contact our Support Team by following the link below and in the field that says "Ask your question", type in "your question" and you will be directed to an agent that can assist you. TurboTax Support

[KeithLM]

My wife's T4RIF was transferred into my T4RIF when she died. I have received a T4RIF for her account with entries in Box 16 (Taxable Amounts) and box 24 (Excess Amount). I have also received a form RRSP Contribution Receipt from my (our) Investment company. This form is for the Transfer Under Section 60L 2023 and is to be attached to the T4RIF when I submit the T4RIF with my 2023 Tax documents. I have noticed that on my T4RIF form the amount in box 16 has a greater value than that in box 24. The box 24  is the value of the fund when it was transferred to me. I believe the difference between box 16 and box 24 represents the amount of taxable payments received in the year.(as described on the back of the T4RIF form). Unfortunately if I enter the amounts on the T4RIF form on line 18 or 20 Turbo tax treats these as income. This results in an increase in tax payable which I would be forced to send in with my Tax Return. I have contemplated just entering the difference between box 16 and box 24 on line 16 of the form but do not want to be penalized if I send in the incorrect information. Does anyone know what is the correct procedure?

[KeithLM]

I have found the solution through a call to Turbo Tax Expert Help.

Using the Turbo Tax form for T4RIF reporting enter on Line 16  the amount from Box 16 (Taxable Amounts) of your T4RIF

On the same form  for T4RIF reporting enter on Line 26 the amount from Box 24 (Excess Amount) of your T4RIF.

Go to Line 23200 on your return and click on it. Enter the requested information and the amount from Box 24 (Excess amount) from your T4RIF. If you have other T4RIF enter their Box 24 values.

You should also have a RRSP Contribution Receipt from your RRIF company if the money has been transferred from another RRIF (wife or partner). This form is a 'Transfer Under Section 60L 2023' (or other Tax year) and is to be attached to your tax form T4RIF when you submit it.

If this does not work call Turbo Tax at [phone number removed]