Hi TT-
My use of the phrase "over-contributed" was not referring to contributions in a given year. We're not in danger of being penalized by the CRA. What I'm saying is that I contributed for several years to my wife's spousal RRSP and now we have unbalanced account amounts. As an example assume the the following:
1) Husband individual RRSP has $100K
2) Wife's individual RRSP has $50K
3) Wife's spousal (containing husband's contributions) contains $1,000,000
Our actual figures differ but this illustrates what I mean by over-contributing to my wife's spousal account.
Given this, we're just left with a 2 related questions (repeated below) that are unrelated to the specifics of our returns. I'm asking how TurboTax functions at this point. Nothing more.
1) If you specify that you want to split RRSP income, is TurboTax is going to do the split whether you're actually eligible or not? Is it up to the taxpayer to know if that income is eligible or not?
2) Do I need to go back and answer "No" to the question above about whether I want to split the income?
You said above that you need to understand where TurboTax is taking the amount from. The answer is that I've entered entered amount for a single T4RSP (again a spousal for my wife) in the amount of $30K (to use the original example). And TT is moving $20K of the $30K to my income. Again, this is great, but the CRA guidance indicates this RRSP withdrawal is not eligible for splitting. I've provided the relevant screenshot highlighted in Yellow above, which says that if you're amount appears in box 22 then your withdrawal cannot be spilt - which begs the question why TT is splitting the income (i.e. the withdrawal amount appears in box 22 on our form).
Thanks in advance for your clarifications.
Regards,
P.
