My available RRSP contribution room for 2019 is negative. Is it correct to report the "unused RRSP/PRPP contributions carried forward from prior years" as 0?

You can not enter a Negative RRSP Deduction in TurboTax. If you do have a negative number here, CRA will make the adjustments once you file your return with "earned income" and open up more room.

 

If you have a negative number here and have made a contribution when you are considered to have Zero room, you will see an effect from CRA on the Excess Contribution Amount of $2,000 that is allowed. CRA will also adjust your deduction limit when you file to agree with their records showing the negative amount.

 

From this article at TaxTips.ca: RRSP Contribution Limits  A taxpayer can contribute up to the amount of their deduction limit, plus an excess contribution as long as the total excess contribution never exceeds $2,000.  However, the allowed excess will be less than $2,000 when the deduction limit is negative due to a PSPA amount.  Also, only taxpayers who are 19 or older in the taxation year qualify to have an excess amount.  Any excess contribution over $2,000 may be subject to a 1% per month tax.

Thanks for your reply, @TurboTaxKim . To confirm from my 2018 Notice of Assessment, my RRSP deduction limit for 2019 is 0 (not negative as in your response). My available contribution room for 2019 is negative, but the overcontribution is by less than $2,000, so I do not pay tax on the overcontribution.

 

I did not make any RRSP contributions in 2019.

 

On my 2019 tax return, I will put the RRSP deduction limit as 0. I will also put the unused RRSP/PRPP contributions carried forward from prior years as 0 (instead of negative).

 

Is this the correct way to proceed?

 

Thanks.

 

Hi. Sorry to post again, but could someone please confirm how I should enter my RRSP deduction limit and unused RRSP/PRPP contributions carried forward from prior years? Please see my message directly above. I wanted to clarify, as @TurboTaxKim 's response was about my RRSP deduction limit being negative, when it is my available contribution room that is negative (my RRSP deduction limit is zero). Any help would be much appreciated. Thanks!

To verify the difference between your RRSP Contribution Room and Deduction Limit:

• The RRSP Deduction Limit is always 18% of pre-tax earnings from the previous tax year, or the CRA established limit, whichever is less. For 2019 the maximum is $26,500.
• Your RRSP Contribution Room or limit is the total of this year's deduction limit and any unused contribution room you have.

If you have a "negative limit" this is usually due to an adjustment made to your Pension Adjustment Amount. Overcontibuting to your RRSP does not cause a negative limit, so you should verify with CRA if you actually do have a negative limit.

 

If you have overcontributed and do have any room opening up, and are not likely to have any earned income in the future or have reached the age of 71, the unused contribution will continue to carryforward as you have already reported this to CRA. You do not need to enter anything in TurboTax, only when you actually have that RRSP Contribution Room available and you wish to claim the unused contribution will you need to make an entry on your tax return. 

 

 

Thanks for the clarification. Yes, it was the unused contribution that was negative due to the overcontribution (not the RRSP deduction limit). In that case, I will not enter anything for the unused contribution on TurboTax.