I used my Life Long Learning plan to withdraw 10,000 (after my first year of university), but instead of going back for another year I took a job. How do I report this?

I did not put it back in an RRSP as money was tight. Not sure how to report using turbotax.

168

Returning Member

May 1, 2023 10:43:16 AM

Hi there.

If you did not continue in the educational program for which you originally withdrew the funds for, you will be required to repay the amount withdrawn to your RRSP. The due date for this repayment will be Dec. 31st of the year after the year that you withdrew the funds. This means that if the withdrawal was made in 2022, the due date for the repayment will be Dec. 31, 2023.

If the funds are not repaid to your RRSP by the due date, the amount of the withdrawal will be have to be included in your income for the year. Please see this CRA webpage for more information: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/lifelong-learning-plan/cancelling-your-withdrawal.html

This page includes the process for cancelling your LLP withdrawal. You don't need to enter anything onto your tax return. The CRA will reassess the applicable return to include any unpaid amounts as income and will send you a Notice of Reassessment that shows any amounts that you will need to pay for unpaid tax.

I hope this helps.

Fraser

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I used my Life Long Learning plan to withdraw 10,000 (after my first year of university), but instead of going back for another year I took a job. How do I report this?