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RRSPs Contributions Not Made But Reported by System


Alison

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When I generated my tax return, it showed much more as a refund than it should have been - substantially. Knowing it was wrong, I did a thorough review of my data entry. For some reason, it seems that the program was interpreting my Unused Contributions as the Contributions that were available. It turns out that "the system" automatically took my unused contributions from Line 1 and put them into Line 5, Total Contributions, then further put this number into Part B, Line 10, Contributions Available To Deduct, and made the RRSP deduction on my return. This Form, 5000-S7 was generated entirely automatically without my input. Had I not been paying very close attention, I would have filed a very, very, inaccurate return because I did not make the rrsp contribution, but the system reported that I did. Not sure what went wrong here, but could it be that because I did this early, Jan. 31, that it was not picking up the correct information from my CRA account, which Ufile says is a connection that won't be available until the end of Feb. Any insight into this would be most appreciated.

Edited by Alison
Explanation a bit confusing so tried to clear it up a bit.
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Hello Alison. If you had an unused contribution from your 2019 file you should make sure that your 2019 NOA (Notice of Assessment) from CRA agrees with that. The unused contribution from 2019 should appear on Line 1 on Part A of Schedule 7. It would then be added to your 2020 contributions from Line 2 with the total appearing on Line 5. The total on Line 5 will correctly carry to Line 10 on Part B. You should have entered your 2020 RRSP eligibility as per the 2019 NOA and that will appear on Line 11 on Part B. Your deduction as per Line 17 will be the lower of Line 10 or Line 11. Have you entered the unused from 2019 at Line 1 correctly as well as your 2020 eligibility at Line 11 correctly? I entered my data several weeks ago and upon review it was correct. I use the Windows version of Ufile resident on my computer (not the online version).

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  • 2 months later...
  • 1 year later...

I was just re-assessed by CRA for Years 2019 and 2020 and the same thing that happened to Alison happened to me (except I didn't catch it).  I just checked my 2019 and 2020 UFile on-line input and I did not enter any contributions in UFile BUT it made my entered unused contribution as a contribution.  Not happy about this apparent software glitch.

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