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Dpullen17

RRSP overcontibution message for 75 year old

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I am hoping someone can help on how a 75 year person is getting a message about RRSp contributions.

The error message is below;

blank.gifYour RRSP contribution exceeds your deduction limit by more than $2,000.
The government will assess monthly penalties of 1% on your overcontribution. Click here to review your data.
 
blank.gifYou overcontributed to your RRSP. The amount you are allowed to claim on your tax return has been limited to the amount eligible. Click here to review your data. See the RRSP schedule in the complete tax return for a detailed breakdown of the RRSP calculations.
 
The summary of taxes show this;
 
 Total income    
113 Old Age Security pension $6,978.87 $6,978.87
114 CPP or QPP benefits $11,149.20 $9,734.04
115 Other pensions and superannuation $24,570.71 $17,738.51
116 Elected split-pension amount (T1032)   $3,016.28
120 Taxable amounts of dividends from taxable Canadian corporations $1,910.06
121 Interest and other investment income (schedule 4) $1,332.32 $782.07
127 Taxable capital gains (schedule 3) $1,186.18 $205.05
Total income [150] $45,217.28 $40,364.88
 Net income    
208 RRSP/PRPP deduction (schedule 7)   $1.00
210 Deduction for elected split-pension amount (T1032) $3,016.28  
Net income [236] $42,201.00 $40,363.88
 
The $1.00 on 208 is because it won't take 0.00 or blank.
Any ideas would be appeciated
 
Derek
 

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I think it has got to be a UFile glitch Derek. I get the same message, and yet my 2016 Notice of Assessment isn't the least ambiguous in citing my contribution limit. I noted on opening UFile for the first time this year -- before inputting anything -- that the warning was already in place. So it has to be a program error. I reviewed everything on hand and went on to fill in my return with the contribution I made, which was exactly equal to the limit stated on the 2016 NOA. Still, the warning persists unchanged. Odd that UFile hasn't explicitly addressed this already when there's so little time left for people to seek clarification.

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I am always glad to hear someone had the same problem as I did.

I'm in the computer industry and if I can't get around a problem, it may be common.

I blew away the initial attempt and started fresh and like you, the notice started right away.

I did determine the problem is new and is related to something in uFile.

The 75 year old records still showed she had an "Unused RRSP Contribution" of $3566 that has been showing for years. I did confirm it showed on her 2016 tax return. But CRA has a regulation that allows up to $2000 in over contribution without penalty. The warning message was because the $3566 was greater than the CRA $2000. 

I changed the "Unused RRSP Contribution" of $3566 to $0.00 and the message stopped displaying.

I do not know why this issued suddenly became an issue other than a programming change. It was the same number the year before and no warning message. In this case the 75 year old will never use up that unused contribution so setting it to zero should have no effect, but if it happens to someone still working, they will want to keep the unused portion for future deductions.

I hope this helps others.

 

Derek

 

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Thanks Derek. I repeated that zeroing of that 'Unused RRSP Contribution' artifact, and cycling the program once through Review-->Interview, the warning did go away. Curiously, I then started getting a benign, double 'green light bulb' Information Tip on hitting Review telling me now that the RRSP deduction I'm claiming exceeds the amount of deduction needed. Say what?! And I get that notice iterating reduced deduction claims all the way down from the full $8K+ I'm allowed on the 2016 NOA, to merely $1. The program still says I'm claiming more than I need.

Nonsense like this may explain why coding skills are in such high demand.

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As I said, because my example was a retired person, zeroing out the Unused would not have an effect but one has to be careful.

We just spent thousands on resolving RRSP deduction issues with CRA because the CRA tax form puts any over contribution for RRSP in the same field as RRSP under contributions so we thought we were still under contributing but found out a problem from 5 years ago, carried forward until last year and had to pay big penalties to clear it all up. 

 

At times it worth going to a professional.

 

Derek

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