RRSPs- I'm confused
Jan 8th 2009, 6:12 pm
#16
Lost in BE Cyberspace
Joined: Aug 2005
Location: South of Calgary
Posts: 13,375
Re: RRSPs- I'm confused
Effectively, yes.
No, it is only based on earned income that is taxed in Canada.
They do not have any contribution room in 2009. You are allowed to go up to $2,000 over your cumulative limit at any time without penalty (although you don't get a refund on this). I guess the new immigrant could make a $2,000 contribution, but they couldn't claim it on their 2009 tax return.
No, it is only based on earned income that is taxed in Canada.
They do not have any contribution room in 2009. You are allowed to go up to $2,000 over your cumulative limit at any time without penalty (although you don't get a refund on this). I guess the new immigrant could make a $2,000 contribution, but they couldn't claim it on their 2009 tax return.
Jan 8th 2009, 6:53 pm
#17
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: RRSPs- I'm confused
I arrived in Canada in January 2007. I paid way in excess of $2000 into my RRSP in 2007 and continued to do so in 2008. I appreciate that my 2007 earnings in Canada will dictate what I am able to pay in and receive a tax credit for in 2008, but what will happen with regards to the amounts I paid in in 2007? I made all the necessary declarations on my 2007 tax return, so can I assume that CRA have already sorted things out, or will I be bitten on the bum in years to come?
If you made contributions in 2007 and deducted them on your tax return then I am surprised that the CRA did not pick up on this. They could at any time, but they have completed most of their reviews of 2007 T1s by now.
Jan 9th 2009, 12:58 am
#18
Lost in BE Cyberspace
Joined: Aug 2005
Location: South of Calgary
Posts: 13,375
Re: RRSPs- I'm confused
If you made excess contributions that you don't deduct on your tax return you are supposed to self-assess your tax penalty and send a cheque with this completed form: http://www.cra-arc.gc.ca/E/pbg/tf/t1-ovp/t1-ovp-08e.pdf.
If you made contributions in 2007 and deducted them on your tax return then I am surprised that the CRA did not pick up on this. They could at any time, but they have completed most of their reviews of 2007 T1s by now.
If you made contributions in 2007 and deducted them on your tax return then I am surprised that the CRA did not pick up on this. They could at any time, but they have completed most of their reviews of 2007 T1s by now.
Jan 9th 2009, 1:56 am
#19
BE Forum Addict
Joined: Dec 2007
Location: Calgary
Posts: 2,092
Re: RRSPs- I'm confused
Watch out for overcontributions: CRA can, and will, charge you 1% penalty per month. Not good.
$1,000 over contribution = $10 penalty per month.
$1,000 over contribution = $10 penalty per month.
Jan 9th 2009, 2:30 am
#20
Born again atheist
Joined: Jul 2005
Location: Europe (to be specified).
Posts: 30,259
Re: RRSPs- I'm confused
I arrived in Canada in January 2007. I paid way in excess of $2000 into my RRSP in 2007 and continued to do so in 2008. I appreciate that my 2007 earnings in Canada will dictate what I am able to pay in and receive a tax credit for in 2008, but what will happen with regards to the amounts I paid in in 2007? I made all the necessary declarations on my 2007 tax return, so can I assume that CRA have already sorted things out, or will I be bitten on the bum in years to come?
Jan 9th 2009, 3:04 am
#21
BE Forum Addict
Joined: Dec 2007
Location: Calgary
Posts: 2,092
Re: RRSPs- I'm confused
7.
They'll catch the over contribution, the fund companys and banks report to CRA.
They'll catch the over contribution, the fund companys and banks report to CRA.
