I'm getting a "Your RRSP contribution exceeds your deduction limit by more than $2,000." warning. My understanding is that the Situation A should be ok (made-up numbers) since $12,000 < $19,000, but I get the warning, and then when I go to Step 3 > Federal, the amount listed for "20800 RRSP/PRPP deduction (schedule 7)" is the $10,000, not $19,000 as I expected. Can someone help me understand what I'm missing / where I've gone wrong?
Situation A:
Available contribution room for 2020 from Notice of Assessment: $10,000
18% of 2020 employment income: 0.18*50,000 = 9,000
Total room available as of end of 2020 = $10,000 + 9,000 = $19,000
2020 RRSP contributions: $12,000
Also, what if the following situation is true, where I've accidentally contributed more than I have room for since $22,000 > $19,000 (and $22,000 > $10,000)? I'm reading a bit online about it but am feeling confused about the order I'd need to do things in. I have no issue with taking the money out of my RRSP and paying tax on it.
Situation B:
Available contribution room for 2020 from Notice of Assessment: $10,000
18% of 2020 employment income: 0.18*50,000 = 9,000
Total room available as of end of 2020 = $10,000 + 9,000 = $19,000
2020 RRSP contributions: $22,000
Thanks for any advice!
