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RRSP Deduction Worksheet

The RRSP deduction worksheet records your itemized RRSP contributions as well as obligations to the Home Buyers' Plan and Lifelong Learning Plans. The results of this worksheet flow into Schedule 7 and from there to the T1 General.

To view the RRSP Deduction Worksheet, double-click on the form named "RRSP Contributions" in the Form Manager.

Contributions

In this section you will be able to report your itemized contributions to RRSP plans. Enter the appropriate date, description, and amount of each contribution, and indicate whether the contribution was made to a Spousal RRSP.

Enter the amount of unused RRSP contributions from last year's Notice of Assessment (line B) in the field provided, as well as any unclaimed RRSP contributions made in the first 60 days of 2012.

Note: The unclaimed contributions made in the first 60 days of 2012 will only apply in the rare case where an individual makes contributions in the first 60 days of 2012 after filing his/her tax return and receiving his Notice of Assessment for 2011.

For example, the taxpayer files his/her return on February 15, receives his Notice on February 26, but purchases additional RRSPs on February 28 (which are applicable to the previous year's return)

Note: You must ensure that the appropriate dates are used when reporting your itemized contributions. Any contributions reported for dates outside the allowable range indicated at the top of the worksheet will be ignored and will not be used towards your deduction on line 208 of the T1 General.

Contributions made throughout the year can be summarized. For example, all deductions made in the first 60 days of 2012 can be totalled and reported as a single contribution made on February 28, 2012.

Deduction

Enter your RRSP contribution limit (a.k.a. RRSP deduction limit) shown on last year's Notice of Assessment (line A) in the field provided.

By default, the software will automatically try to optimize the RRSP contributions applied to the tax return. If you wish to ignore the optimization, check the box provided and enter the desired amount in the field to the right up to the maximum of the amount shown for "Allowable Deduction - lesser of actual contributions and RRSP limit"

Note: The amounts for contributions towards the Home Buyers' Plan and Lifelong Learning Plan in this section cannot be reported directly. Attempting to do so will cause an error which must be corrected. These amounts are calculated below here and here respectively.

The amount reported in "Actual Contribution Claimed" will forward to line 208 of the T1 General.

Excess Contribution Situation

There is an allowance for over-contributing to RRSP plans, currently set at $2,000 over the taxpayer's lifetime. This section will calculate any excess contributions that have been made. If any contributions are in excess of the allowance, you may have to pay a penalty.

There is no information reported directly in this section. All information is calculated.

Saskatchewan Pension Plan

Enter contributions made to the Saskatchewan Pension Plan for yourself and your spouse/common-law partner in the fields provided, to a maximum of $2,500 for each plan yearly.

Refer to Saskatchewan Pension Plan for more information.

Calculating Your Obligations to HBP Plans

This is broken down into three areas:

• Withdrawals and Repayments

  Enter appropriate amounts in the fields provided. The amounts will be used to calculate the required repayment for 2012, which should match the amount indicated on last year's  Notice of Assessment.

  Note: The amount on the second line labelled "Amount of withdrawal from your RRSP" is only applicable if the money was withdrawn in 2012, and is not reported directly here. Attempting to do so will cause an error which must be corrected. Amounts withdrawn in previous tax years should be reported on the third line labelled "Withdrawals".

• Repayments

  Enter the amount of RRSP contributions you are designating towards your Home Buyers' Plan repayment in the field provided.

  If the amount is less than the required repayment, the difference will be added to the taxpayer's income on line 129 of the T1 General.

  If the amount is more than the required repayment, it will reduce subsequent year's required repayments.

  Note: According to CRA guidelines, only current-year contributions may be used towards repayment of your HBP plan. Unused amounts from previous years are not eligible.

• Repayable Balance at the End of the Year

  Enter appropriate amounts in the fields provided.

  Note: This information is only provided as an unofficial estimate for the taxpayer's benefit. It does not appear in the return, and the official amounts appear on the taxpayer's Notice of Assessment.

Calculating Your Obligations to LLP Plans

This is broken down into three areas:

• Lifelong Learning Plan (LLP)

  Enter appropriate amounts in the fields provided. The amounts will be used to calculate the required repayment for 2012, which should match the amount indicated on last year's  Notice of Assessment.

  Note: The amount on the second line labelled "Amount of withdrawal from your RRSP" is only applicable if the money was withdrawn in 2012, and is not reported directly here. Attempting to do so will cause an error which must be corrected. Amounts withdrawn in previous tax years should be reported on the third line labelled "Withdrawals".

• Repayments

  Enter the amount of RRSP contributions you are designating towards your Lifelong Learning  Plan repayment in the field provided.

  If the amount is less than the required repayment, the difference will be added to the taxpayer's income on line 129 of the T1 General.

  If the amount is more than the required repayment, it will reduce subsequent year's required repayments.

  Note: According to CRA guidelines, only current-year contributions may be used towards repayment of your LLP plan. Unused amounts from previous years are not eligible.

• Repayable Balance at the End of the Year

  Enter appropriate amounts in the fields provided.

  Note: This information is only provided as an unofficial estimate for the taxpayer's benefit. It does not appear in the return, and the official amounts appear on the taxpayer's Notice of Assessment.

You will need to indicate whether you are designating your spouse/common-law partner as the LLP student at the bottom of the worksheet.

RRSP Deduction Limit

This section allows you to calculate your RRSP Deduction Limits for 2012 and 2013. Enter appropriate amount to calculate the available limits.
Note: These calculations are provided solely as an unofficial estimate. You should obtain the actual figures either from your Notice of Assessment, or by contacting CRA.