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?
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 If you have already withdrawn the over-contribution.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:
Or use form T746 if RRSP was already withdrawn with tax withheld: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:
Calculate your penalty:
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1-ovp.html
Will I be penalized question:
I hope this was helpful
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?
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