T3012A Form – Tax Deduction Waiver - RRSP overcontribution

[txnov]

I had overcontributed to my RRSP in 2018 (as it was automated deductions) and therefore withdrew money from RRSP in 2 batches to avoid penalty in 2019. Am I eligible to apply for waiver on the tax deducted via T3012A Form while filing my 2019 taxes?

[TurboTaxHeba]

Yes. If you have already withdrawn the over-contribution.

If you overcontribute to your RRSP, you fall into one of these two categories: 

• You are 19 years or older > you can overcontribute by $2000 as long as you can cover this amount next year by increasing your RRSP contribution limit. You can use this overcontribution cushion once in a lifetime. 

• You are under 19 years old > you are not allowed to over contributing. 

• You have to withdraw the overcontribution,  receive a T4RSP.  

• Can either file a T3012A form with CRA and wait for the approval. 

• File the return and fill the T746 form. 

T3012A: 

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/making-w... 

Or use form T746 if RRSP was already withdrawn with tax withheld: 

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t746.html  

1% penalty:  

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contribu... 

Calculate your penalty: 

https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1-ovp.html 

Will I be penalized question: 

https://turbotax.community.intuit.ca/community/seniors-students/discussion/rrsp-excess-contribution-... 

I hope this was helpful

[txnov]

Thanks you for your reply.

I fall under the below criteria:

Above 19, Over contributed by more than $2,000, Withdrew over contribution in 2019, received the T4RSP and has tax withheld. 

Based on your reply, I gather that I should file the return and fill the T746 form. Correct?

What edition of TurboTax supports this?

[TurboTaxHeba]

Yes. If you did not apply for T3012A and withdew the amount from RRSP > received T4RSP: 

• Report the amount shown in box 22 of the T4RSP slip on line 12900 of your Income Tax and Benefit Return. 

• Claim the tax the issuer withheld on line 43700 of your Income Tax and Benefit Return.

• Fill out Form T746, Calculating Your Deduction for Refund of Unused RRSP, PRPP or SPP Contributions, to calculate the amount you can deduct for the withdrawal. 

• Netfile your return, and Mail your T746 separately 

I hope this was helpful 

[txnov]

Thank you - that was helpful.