My 2019 assessment said: We added $1,334 to your income because you did not designate a repayment under the Home Buyers' Plan. Need assistance with this

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Repaying Home Buyers’ Plan Withdrawals

You have 15 years to repay withdrawals made from your RRSPs under the HBP starting two years after the withdrawal. In each tax year, repay one-fifteenth of the total amount borrowed until the full amount owed is paid back to your RRSPs. For the full withdrawal amount of $35,000, the yearly payment is $2,333.33.

Repayments for the HBP are made with contributions to your RRSP in the year of the repayment or 60 days in the following tax year. After you make your RRSP contribution, choose to count all or a portion towards repayment under the HBP.

You cannot use the contributions you made to a spousal RRSP account amount to pay for the HBP. This amount is considered the spouse’s fund. Similarly, you cannot use contributions made by your spouse to your spousal RRSP account. The only eligible contributions are the ones you made to your own RRSP account.

To designate your RRSP contributions as a repayment under the HBP, fill out lines 24500 Schedule 7 to report the RRSP you have contributed or unused from previous years. Then, fill line 24600 with the amount you wish to transfer to the HBP repayment. Make sure to designate the amount to the HBP in schedule 7, otherwise, your RRSP contributions do not count as a repayment; the HBP amount is added back as taxable income and you lose this RRSP room forever.

You can contribute extra every year to reduce future payments’ amounts. For example; if you withdraw the full $35,000 and paid $4,000 in the first year, the next 14 payments will be reduced to: ($35,000 – $4,000) / 14 = $2,214.29.

However, if you fail to make a contribution in any year, it doesn’t increase the future payments’ amounts. The missing payment will be added to line 12900 of your income tax return as an RRSP income. Then, future payments will not be changed.

For more information please check: Repaying Withdrawals Under the Home Buyers’ Plan

For more information please click on the TurboTax FAQ: How to enter my Home Buyers' Plan repayment information in TurboTax?

If you need any further clarifications, we would be glad to assist you by having you contact us by phone or via Facebook or  Twitter.