Hi, I am in the same situation. I took a Payment I...
New Member


Hi, I am in the same situation. I took a Payment In Lieu (PIL) of Severance from the Federal Government. I submitted a T1213 form to CRA received an approval letter and gave it to my employer. I received the payment with no taxes removed and put it into my RRSP. My total salary in Box 14 of my T4 included that PIL payment (no T4A was issued).

A CRA Rep mentioned that the PIL payout $ should be recorded as a RRSP Designated Transfer in Schedule 7 so that that portion from PIL $ would not be taxed, however I get the following error "The amount you designate for transfer to an RRSP/PRPP cannot be greater than the eligible income reported for transfer." Because of this error, I cannot file my taxes, yet when I remove the transfer I owe a huge amount of taxes.

Am I reading you correctly in that I should enter nothing for RRSPs, submit with taxes owing, and let CRA work it out?

This widget could not be displayed.