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I can't complete the HBP section. I didn't make an RRSP contribution.
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Seniors and students
For the Home Buyers' Plan repayment you can only specify a portion equal to or less than your RRSP contributions. If you haven't made any RRSP contributions, you will not be able to specify a repayment amount and the annual minimum repayment will be added (and taxed) as income.
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Seniors and students
I have a question about the HBP.
A) is the repayment to the HBP made automatically? or do I, firstly, need to a) pay into the RRSP b) get the slips for the RRSP and then come tax time, label and designate the amount that I "manually paid" to the RRSP account, as 1/15th of a HBP.
I had thought that since I designated on the taxes that it can off automatically. Is this not the case? Just a bit confused as to how the process works.
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Seniors and students
To clarify how a participant in the Home Buyer's Plan designates a repayment, your description is quite accurate.
- CRA will let you know what your HBP Minimum Repayment Amount is, as well as other detail of your HBP account on your Notice of Assessment (NOA). You can also find this information by viewing it in your Online CRA My Account.
- In order to designate a repayment, you must make a contribution to an RRSP within the tax year or the 1st 60 days of the year after.
- It is not necessary to contribute to the same RRSP you withdrew funds from, nor do you need to advise the institution that you are making an HBP repayment.
- You will receive an RRSP Contribution slip (receipt) and report it on your tax return in the same way you have reported contributions in the past.
- You will then choose to "designate" a repayment. You can choose to make the "minimum required amount", or you can designate up to the full amount of your contribution.
More information can be found in this FAQ from TurboTax: How do I enter my Home Buyers’ Plan repayment information in TurboTax?