Got our tax assessment back - but they've removed the RRSP refund?!
Hi
Sorry for another tax query. We just got our notice of assessment, and they have given my husband a refund of nearly $1100 less than what was originally calculated. They explained on the beet that they have "adjusted your RRSP/PRPP deductions from $2,759 to $, which is the maximum allowable" Huh?! :sneaky::confused: This has me confused. My husband paid $2759.82 in RRSP contributions last year - so why have they told him he cannot claim tax back on those?! At the bottom of the deduction limit statement it says "you have $2759 of unused RRSP/PRPP contributions available for 2014" If I am reading this right, does this mean that, despite the contributions being made in the 2013 tax year, he cannot claim the refund for that year, and has to wait until 2014 tax return?! Following that, then his RRSP contributions from this year won't be available for deduction until 2015 tax return!!!! So we'll have to file ANOTHER tax return for 2015 despite not having worked in the country at all that year! That seems ridiculous to be |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Originally Posted by cllb2
(Post 11184861)
Hi
Sorry for another tax query. We just got our notice of assessment, and they have given my husband a refund of nearly $1100 less than what was originally calculated. They explained on the beet that they have "adjusted your RRSP/PRPP deductions from $2,759 to $, which is the maximum allowable" Huh?! :sneaky::confused: This has me confused. My husband paid $2759.82 in RRSP contributions last year - so why have they told him he cannot claim tax back on those?! At the bottom of the deduction limit statement it says "you have $2759 of unused RRSP/PRPP contributions available for 2014" If I am reading this right, does this mean that, despite the contributions being made in the 2013 tax year, he cannot claim the refund for that year, and has to wait until 2014 tax return?! Following that, then his RRSP contributions from this year won't be available for deduction until 2015 tax return!!!! So we'll have to file ANOTHER tax return for 2015 despite not having worked in the country at all that year! That seems ridiculous to be |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
We couldn't find a definite place to calculate that. He started paying RRSP in May, and it was his first year paying it as it was out first year here
|
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Originally Posted by cllb2
(Post 11184867)
We couldn't find a definite place to calculate that. He started paying RRSP in May, and it was his first year paying it as it was out first year here
Find his 2014 contribution room from his tax return. This year the maximum he should contribute is his 2014 contribution room less $2,759.00. He will then be able to deduct both for his 2014 tax return. |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Ah! I see! So we'll be able to catch up for the next tax return. It looks like $18,753 for next year. Do the payments to SUnLife stop automatically when he gets to this or do we need to keep an eye on it?
Thank you so much! |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Originally Posted by cllb2
(Post 11184904)
Ah! I see! So we'll be able to catch up for the next tax return. It looks like $18,753 for next year. Do the payments to SUnLife stop automatically when he gets to this or do we need to keep an eye on it?
Thank you so much! |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Originally Posted by cllb2
(Post 11184904)
Ah! I see! So we'll be able to catch up for the next tax return. It looks like $18,753 for next year. Do the payments to SUnLife stop automatically when he gets to this or do we need to keep an eye on it?
Thank you so much! |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Thank you! I shall certainly keep an eye on it. Though, saying that, I imagine he stops contributions when we leave in July anyway so hopefully won't have to do too much!
|
Re: Got our tax assessment back - but they've removed the RRSP refund?!
Originally Posted by cllb2
(Post 11184953)
Thank you! I shall certainly keep an eye on it. Though, saying that, I imagine he stops contributions when we leave in July anyway so hopefully won't have to do too much!
One for JonBoy that. |
Re: Got our tax assessment back - but they've removed the RRSP refund?!
TBH, unless there is free money on offer from employer matching, I wouldn't bother for just one year.
If there is then he should max out his contributions this year to get the maximum tax refund here. Then withdraw the whole amount from the RRSP in 2015. There will be a 25% withholding tax, but it will not be taxed in the UK. If he is on $100+ in Canada he will likely be on 40% in the UK so he can contribute the withdrawal to a UK pension and get a 40% refund of his UK tax. |
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