In the worksheet for RRSP for calculating Deduction Limits, there is an extra $ 2,000 for anyone greater than 19 years of age. This extra $ 2,000 is not reflected in the Turbotax RRSP summary, therefore showing an overcontribution that may be subject to fine/tax.
The $2000 is actually a buffer to prevent people from incurring an overcontribution penalty. Although you can technically use it, it does not reduce your tax owing because you are actually over-contributing.
Here is an article you can read if you need more information:
You are allowed to over-contribute to your RRSP by $2,000 without incurring any penalties – but note that the contribution does not qualify as an income deduction for that tax year. Ultimately that means you can add the $2,000 to your RRSP account but not expect any tax reduction on your tax return for it.
(http://wheredoesallmymoneygo.com/the-rrsp-overcontribution-limit-think-twice-before-using-it/)
No such amount. Do you mean the $2000 overcontribution allowance?
The $2000 is actually a buffer to prevent people from incurring an overcontribution penalty. Although you can technically use it, it does not reduce your tax owing because you are actually over-contributing.
Here is an article you can read if you need more information:
You are allowed to over-contribute to your RRSP by $2,000 without incurring any penalties – but note that the contribution does not qualify as an income deduction for that tax year. Ultimately that means you can add the $2,000 to your RRSP account but not expect any tax reduction on your tax return for it.
(http://wheredoesallmymoneygo.com/the-rrsp-overcontribution-limit-think-twice-before-using-it/)