I have received a severance of $21,000. I put $10,000 directly to RRSP and $11,000 paid that was taxed. My T4 shows $11,000 in Box 67. Is it suppose to show $21,000?

As clarification,  employer was able to transfer the $10,000 directly to my RRSP.

Do I still put the $10,000 for RRSP contribution?  I am under my limit.   

Do I put the missing $10,000 as Other Income?


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Severance pay, also called a retiring allowance, may include an eligible portion and a non-eligible portion.

If all of your $21,000 is ineligible, then $21,000 should be noted in Box 67 of your T4.  If $10,00 is an eligible amount then $10,000 should be entered in Box 66 and $11,000 in Box 67 of your T4.  In any case, it appears that your employer has not properly completed your T4 and you should contact them for clarification.

This will affect your RRSP contribution in that if a portion of your severance is eligible, it can be claimed as a deduction without affecting your RRSP contribution room.  If none of it is eligible, then the contribution will affect your contribution room.      For more info, please see http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/rtrns/t4/spcl/trnsfr-eng.html 

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