My retirement allowance was directly deposited to my RRSP mid-Jan 2019. I have no T4/T4RSP with box 66 Retiring Allowance. Turbotax is flagging an error. Help?

[dyaromy9]

I'm getting an error message saying "The amount you designate for transfer to an RRSP/PRPP cannot be greater than the eligible income reported for transfer." (which turbotax has as $0).

[TurboTaxKim]

When a designated transfer takes places in the first 60 days of the year (2019), the contribution receipt received for the transfer must be reported on the previous taxation year (2018). 

• You'll need to report your RRSP contribution made in the first 60 days of 2019. Do not report it as a designated transfer, report it as contribution.

•  The RRSP contribution amount is not deducted, but carried forward to the following year.  This way it does not reduce the contribution room, and is available the following year for the designated transfer. 

•  When you file your 2019 tax return, you will have the T4 to report as income, and can then apply the carried forward amount as a "designated transfer" to offset that income.

[tdibratt]

I am confused by this response.  I have a similar situation where I received a lump sum amount from my employer and was given to be Jan 2020.  Some amount of that was eligible as per CRA guidelines:

The amount that is eligible for transfer under paragraph 60(j.1) of the Income Tax Act (the Act) is limited to:

• $2,000 for each year or part of a year before 1996 that the employee or former employee worked for you (or a person related to you)

So let's assume it was $10,000.  My Bank then took that money and put it in my RRSP Account pursuant to 60(j).  I received a RRSP contribution slip for the $10,000 as transferred to my RRSP in the first 60 days of 2020.  Now my contribution room for 2019 tax year is say $6,000.  TurboTax is automatically taking $4,000 (the excess) and transferring it to be used for 2020 tax year.  

Why would my employer issue a T4RSP for 2020 tax year?  I don't think they would.  I called CRA and they told I want to see the $10,000 on line 14 of Schedule 7.  In order for that to happen I need to specify in TurboTax on the RRSP panel that the $10,000 is a DESIGNATED TRANSFER.  All is fine till I go NETFILE and then TurboTax flags it as an error as my contribution is more than eligible.  

What am I doing wrong?

[Percy]

Who sends out a T4RSP and when? I made a contribution of my retirement allowance to an RRSP in the first 60 days of 2019 and reported it on my 2018 return. Now I want to claim that amount on my 2019 return to offset my income.  These eligible and ineligible amounts are reported as income in boxes 66 and 67.  I do not have an T4RSP and I cannot figure out where the amounts in boxes 66 and 67 need to appear in order to claim them. Thanks

[TurboTaxKim]

Sorry for the confusion, your employer will not issue a T4RSP, that answer should have read "T4". 

When a designated transfer takes places in the first 60 days of the year (2020), the contribution receipt received for the transfer must be reported on the previous taxation year (2019). 

• You'll need to report your RRSP contribution made in the first 60 days of 2020. Do not report it as a designated transfer, report it as contribution.

•  The RRSP contribution amount is not deducted, but carried forward to the following year.  This way it does not reduce the contribution room, and is available the following year for the designated transfer. 

•  When you file your 2019 tax return, you will have the T4 to report as income, and can then apply the carried forward amount as a "designated transfer" to offset that income.

[TurboTaxKim]

@Percy 

Please see the above answer and disregard the T4RSP reference as this was a typo. 

[Percy]

But...I still don't see where to claim my eligible amount.  Where does it show my "designated transfer" on Turbo Tax Online?  It is not letting me use the "carried forward" amount of my RRSP contributed in the first 3 months of 2019.  I have reported my eligible amount as income from my T4, but this eligible amount I want to use as a deduction is not showing up anywhere else.

Also, what does this step look like because I can't find this step:

"At the RRSP Contribution step, enter the amount of your eligible retirement allowance that you transferred to your RRSP, as shown on the receipt from your financial institution." I don't know what the screen "RRSP Contribution Step" looks like.  It can't be the RRSP Contribution page, because I already reported my contribution on lasts year's return.

[LTL1966]

Hi,

i have the same problem 2 years later. Did you ever succeed in solving your problem? Reporting the transfer amount when the contribution is already entered the previous year.

thanks,

[Percy]

Ugh…sadly, I just couldn’t solve it on Turbo Tax.  Ended up bringing it to an accountant. On the actual tax return, the amount was reported on a schedule as a “transfer” but I could not see where to do that on Turbo Tax.  I can find out the schedule # if that’s any help, but I’m not sure that will help you in Turbo Tax.

[LTL1966]

It’s ok. I know which schedule. Have to enter the amount on line 14 of schedule 7.

i always bought the CD version which allows us to change manually in case of a bug like that. Unfortunately, this year, I want to try the online version. Didn’t realize that they’re not as flexible as the CD version.

My other option is to buy the CD version and modify it manually.I hate to spend double on the software that’s why I tried to ask you first. I think it will be cheaper to buy the CD version than paying an accountant…

Thanks for your prompt answer!!