I wanted to know about my HBP payment timeline. I withdrew 35,000 in 2020 from my RRSP so should my first repayment be in 2022 (2021 tax year) or 2023 (2022 tax year)?

[Mohit0102]

You have up to 15 years to repay to your RRSP, pooled registered pension plan (PRPP) or specified pension plan (SPP) the amounts you withdrew from your RRSP under the HBP.

Your repayment period starts the second year after the year when you first withdrew funds from your RRSP(s) for the HBP. For example, if you withdrew funds in 2022, your first year of repayment will be 2024.

For more detailed information, please review the link below from Canada Revenue Agency. 

How to repay the funds withdrawn from RRSP(s) under the Home Buyers’ Plan (HBP)

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[lamanhcb]

According to Canada Revenue Agency (CRA), Your repayment period starts the second year after the year when you first withdrew funds from your RRSP(s) for the HBP

You withdrew 35000 in 2020, so your first repayment should be in 2022 (2021 tax year)

For more information, please see the Canada Revenue Agency (CRA) link as When do you start making repayments?

Thank you for using TurboTax

[karanthakker91]

I called CRA and they said first repayment can be in 2023 i.e. when I file my 2022 tax year. I'm confused now.

[TurboTaxGinette]

As you made your RRSP withdrawal for your HBP in 2020, you will need to buy your payment's amount in RRSP in the year 2022. You will then include this RRSP as repayment in your 2022 tax return which you will be filing in the calendar year of 2023. Yes, it can be confusing but look at the tax return you are filing right now. It is for the 2021 taxation year but you are filing it in 2022. 

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