Other Deductions

On the federal tax return, line 23200, "Other deductions," captures various deductible amounts not listed on other specific deduction lines. On the Quebec tax return, line 250, "Other deductions," includes a variety of deductions, with a corresponding code number entered in box 249 to identify the type of deduction. Common examples of what you can claim on line 250 include:

• Repayment of amounts overpaid: Repayment of government benefits (such as QPIP, EI) or other amounts previously included in your income. On federal income tax return, repayments are reported on line 23200 of federal income tax return.
• Social benefits repayment: Repayment of certain social benefits, which corresponds to the amount on line 23500 of your federal return. On federal income tax return, repayments are reported on line 25000 of federal income tax return.
• Transfer to registered plans: A deduction for amounts transferred to a registered pension plan (RPP), registered retirement savings plan (RRSP), registered retirement income fund (RRIF), pooled registered pension plan (PRPP), or voluntary retirement savings plan (VRSP). On federal income tax return, transfers are reported on line 23200 of federal income tax return.
• Legal fees: Fees paid for certain legal matters, such as collecting support payments or appealing a tax assessment. On federal income tax return, legal fees are reported on line 23200 of federal income tax return.
• Disability supports: Costs for disability supports that allowed you to work, attend school, or do research. On federal income tax return, disability support payments are reported on line 21400 of federal income tax return.
• Quebec exploration expenses: Expenses from flow-through shares that entitle you to the additional deduction for Quebec resources, reported using RL-11 or RL-15 slips.

Deduction for unused RRSP or PRPP/VRSP contributions:

Contributions to RRSPs, PRPPs, or VRSPs are deductible from taxable income up to the available contribution limit (including any unused room carried forward). This reduces federal and Quebec income taxes for the year the deduction is claimed. Contributions exceeding the annual limit (plus $2,000 grace) incur a 1% per month penalty tax on the excess amount until withdrawn or absorbed in future limits. Normally, withdrawals from RRSPs, PRPPs, or VRSPs are included in taxable income for the year. Form T746, Calculating Your Deduction for Refund of Unused RRSP, PRPP, or SPP Contributions, is used to determine the deductible amount, which is reported on line 23200 of the federal T1 tax return and on line 250, “Other deductions,” of the Quebec tax return.

Example :

Chloe, a resident of Quebec, contributed $20,000 to her RRSP in 2023, but her maximum deduction limit for that year was only $8,000. This left her with $12,000 in unused RRSP contributions. In 2024, she decides to withdraw $10,000 of these unused contributions.

Answer: Chloe will report the $10,000 withdrawal on line 129 of her federal T1 return and line 154 of her Quebec TP-1 return. She must complete Form T746 to calculate the deductible amount. The $10,000 deduction is then claimed on line 23200 of her federal return and line 250, “Other deductions,” of her Quebec return, preventing double taxation. The remaining $2,000 of unused contributions can be carried forward to future years.