Solved: I withdrew $15,000 from my RRSP this year. The wit...

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
EnglishEN

Pick a language

Français English
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

I withdrew $15,000 from my RRSP this year. The withholding tax for this amount was 20%. I did not have any other income. Where do I see this refund on my tax form?

 
1 Best answer

Accepted Solutions
Highlighted
Moderator

I withdrew $15,000 from my RRSP this year. The withholding tax for this amount was 20%. I did not have any other income. Where do I see this refund on my tax form?

Once you receive your T4RSP slip for your RRSP Withdrawal, you will enter it in TurboTax under the Income section. Then the software will perform the calculations for you and you will see a refund amount based on these calculations.

Be aware that although your income is quite low, you may still have to pay some tax and not receive that entire 20% that was withheld as a refund. This depends on your individual tax situation, what type of credits you are claiming and the province you reside in. 

View solution in original post

3 Replies
Highlighted
Moderator

I withdrew $15,000 from my RRSP this year. The withholding tax for this amount was 20%. I did not have any other income. Where do I see this refund on my tax form?

Once you receive your T4RSP slip for your RRSP Withdrawal, you will enter it in TurboTax under the Income section. Then the software will perform the calculations for you and you will see a refund amount based on these calculations.

Be aware that although your income is quite low, you may still have to pay some tax and not receive that entire 20% that was withheld as a refund. This depends on your individual tax situation, what type of credits you are claiming and the province you reside in. 

View solution in original post

Highlighted
Returning Member

I withdrew $15,000 from my RRSP this year. The withholding tax for this amount was 20%. I did not have any other income. Where do I see this refund on my tax form?

After i filled all T-slips except T4rsp, my family tax return is 1800$, after input T4rsp, my family tax return is 600$, the box 22 is 3266$, box30 is 326$, I and my wife Fed-Tax rate is about 20.5%, So, withdraw RRSP deduction tax will be about 50%, Why? 

Highlighted
Moderator

I withdrew $15,000 from my RRSP this year. The withholding tax for this amount was 20%. I did not have any other income. Where do I see this refund on my tax form?

The T4RSP will show the amount withdrawn in Box 22 and the Tax withheld in Box 30. If you withdrew $5000 or less, the financial institution would hold 10% taxes which you can claim as tax deducted when you file your tax return and will be added to the total tax deducted to line 43700. 20% is the Tax withheld on any withdrawn amount more than $5000 to $15000, and 30% for more than $15,000. You can check this amount in your return as follow:

 

- If you are using the online version --> click on the arrow beside the amount of the refund on the top left corner to expand the details --> click on "view detailed tax summary" and you can check line 43700. It should include all tax deducted from all slips.

 

- If you are using the desktop version --> click on "Review" from the left side menu -->  choose "Detailed Tax Summary" --> scroll down to "Refundable Tax Credits" and check the value of the "tax deducted". Or you can check line 43700 from the "Forms" at the top bar. 

 

Although the Financial Institution deducts 10% of the $5000 withdrawn amount, you still have to calculate the proper taxes on this income depending on your tax bracket. It will be the federal tax bracket + the provincial tax bracket (depending on where you reside). This might result in more tax deducted from this income that previously withheld by the financial institution. 

 

This is the guideline for reporting T4RSP

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4079/t4rsp-t4rif-g...

 

I hope this was helpful 

 

v