Hi All. I received a severance pay in Jan 2020 of which 14,000 was eligible as DTERA and was contributed by my bank into RRSP within the first 60 days of 2020. That became a RRSP overpayment for the 2019 tax year and was carried over into 2020. Now for 2020, I am going to receive the T4 from my employer which should show the DTERA amount as an eligible contribution for tax free.
Question. Am I correct that the amount on the T4 which I presume will be BOX 66 will automatically be offset by the RRSP contribution and TurboTax will handle it appropriately? Do I need to enter or do anything to make sure this happens?
Also, I have say $16,000 of contribution room for 2020 tax year but TurboTax thinks I only have 2,000 room left as I already contributed 14,000 if I wanted to contribute here in the first 60 days of 2021. I don't think that should be the case as the 14,000 was a direct contribution to RRSP and eligible without the need to have any RRSP room. So it should not be subtracting the 14,000 from the 16,000 right? I should still have an additional 16,000 of room for 2020 RRSP.