Mrs-G

I've searched and can't quite find what I need, but finding bits of the info and I'm sure I've read it on here before.

I moved back to Canada in 2012, so filing tax for first time in a few years. I transferred a UK pension using the QROPS scheme but I'm just not sure how to report it on my tax return.

I've found an old post that says claim it as income on line 130 and then show it as a transfer on line 11 of schedule 7 but I don't even know if these are still the correct lines/schedules for a 2012 return.

Can anyone tell me the correct places to be entering the QROPS transfer (both as income and a deduction presumably) so I am not attracting any tax liability for it?

Thanks very much

JonboyE

The above is still correct.

Mrs-G

You're a star! Thanks. It was one of your posts I had been reading from 2010 so wasn't sure how relevant it was still.

Cheers for all your info on here actually... always very helpful reading your replies

jimmydean

And just to clarify for my own benefit....what you write on Line 11 of Schedule 7 you also carry forward to Line 208 of the tax return?

JonboyE

It is part of the amount on line 208. The S.60(j) transfer does not affect your RRSP contribution room so you may have other amounts to deduct.

ann m

Aaagghh!

Am doing my tax return on UFile.

Using the above very helpful information, I have found Line 130 for other income and have entered the amount we transferred from the UK into the QROPS last January.

Cannot find a Schedule 7 or a line 11 in the way that UFile prompt you through the various boxes and pages. What else might it be called?

I can find reference to line 208 - in UFile called "Portion of your contributions to use as a deduction in 2012".

Anyone know if entering it in line 208 will suffice. Will it "cancel out" line 130?

Gobbledegook? Sorry. Anyone?


OK: Edit - it's not working because UFile is now telling me we owe $110k++

JonboyE

Not completeing the schedules will only lead to trouble.

I have not used U-File but once upon a time I did use TurboTax. This would allow you to switch to the forms rather than interview method. One you are in forms you can search for schedule 11.

Alternately, just send them a cheque for $110k. They won't mind.

ann m

Thanks Jonathan. Maybe I will switch to the forms and schedules on the CRA website? It's just that because we have used UFile for three years now, half the boring information already populates for you so it's easy.

And re the cheque for $110k. Can I just say it's in the post.

JonboyE

You can try using TurboTax - like U-file it is free until you want to file/print a return.

Your pension administrator will have sent you a 60(j) contribution receipt. Did they also send you a T4A pension income slip? If so, you can enter the transfer with U-File. If not, I think you are stuck if you continue using U-File. It seems to only handle pensions transfers that are shown on some sort of T slip.

ann m

Thanks. OK - might look at Turbo Tax.

I do have the 60(J) slips for both of us, and I sent an email yesterday to the investment people to confirm if there were any other "T" slips due to us (nothing has come yet) - plus we have TSFA's with the same investment company, and our bank - and to date, I have no additional "T" forms.

Zoe Bell

we couldn't get Ben's QROPS stuff to work on HR block's stuff either
we must have ended up using Turbo tax because it was Jonathon who helped us with our QROPS stuff. (Thank you!!)

Keep the stuff handy because the chances are you will get a few letter/phonecalls aboutt his stuff from the CRA ( various depts) at some point in the next year. I know we did.

However they were very reasonable when you point out that you've already supplied one dept with the exact same info. Once you tell them that they do seem wiling to talk to each other!

Tangram

Eeek ! I don't remember whether I told the accountant about transfers in the past ( mental note : check copies of the returns when I get home ).

MarkM

I'm still slightly confused here. If the transfer involves withdrawing money from one scheme and transferring to another (ie you (or your broker, accountant or agent) gets sticky mitts on it at all) then this procedure of declaring, 60(j), T4A etc is correct... however if it is a scheme to scheme transfer, ie one registered provider transfering directly to another (even under under QROPS from UK to Canada etc) then, as far as I am aware, you do not report this at all on tax returns.

Comments?

ann m

I'm just thinking CRA would need to know if you are bringing $25k, $50k, $250k into the country? I suppose you will be declaring it in years to come as part of your earnings as your pension, but I don't want to be justifying in 20 years time where it all came from! Not a legal answer, I know - just a cover-my-backside answer!

JonboyE

It has to go on your tax return. All transfers, in and out, of RRSPs are reported to the CRA. If the CRA can't match the RRSP provider's information with your tax return they are likely to reassess you incorrectly.

This goes on Schedule 7. You put the total of all RRSP contributions (the ones you make and well as transfers in) on lines 2 and 3 as appropriate. These total on line 4 (245) and 5.

Then enter the amount that is transferred in on line 11 (240). This is then deducted from your total contributions to leave your deductible contributions on line 13 (208).

If the provider that is transferring the funds is a Canadian RRSP or RIFF or other registered fund they should supply the necessary tax slips. The receiving fund should provide the contribution receipt. If you are using tax preparation software, the software should autopopulate the required fields from the T slips. U-File can handle this.