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HBP repayment not being designated as repayment and so included as RRSP income on line 12900


Seaborn

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Hi, 

 

I've correctly completed the HBP interview page indicating that I paid the required amount of my HBP repayment last year. In the return on Table H of the RRSP schedule, this amount is not included as designated repayment on line 3. Then line 2 minus line 3 equals the amount I repaid which is now included as RRSP income on line 12900. I don't think it should be, as this is my designated amount. Does anyone know how to correct this? It appears the info in the interview form is not correctly transposed to the return. 

 

Thanks

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  • 3 weeks later...

this is what I found in the forum and it helped. 

*** quote ***

This error is still happening in 2021. I tried using $1700 from unused RRSP contributions previously reported and available to deduct listed in the RRSP section of the Interview but when I assign this as my HBP repayment amount it just gets added to my income and my designated repayment stays at 0. I tried playing around with some of the interview settings and it only works if I take out the $1700 from "Prior years..." and move it up one line in the interview to "RRSP contributions from the first 60 says of 2021" but obviously that is incorrect. I wish Ufile would get their act together and fix an error that has been mentioned here for several years.

*** unquote ***

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You have to designate your HBP payment in two places, once in the "HBP - Home Buyer's Plan page and then in the "RRSP Contribution limit" page.  In the "HBP - Home Buyer's Plan" page, you put in how much you have designated your RRSP contribution as HBP repayment, and then in the "RRSP Contribution limit" page, in "First 60 days" or "March - December 2021" whichever place that corresponds to the time that you made your RRSP contribution that included your HBP repayment, you have to state the total amount that you contributed to RRSP to show that this is the amount that you contributed to the RRSP.  

Once you do that, then UFile will calculate it correctly. 

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  • 11 months later...

There is something vague about the wording requesting users to enter data from the Home Buyers Plan Statement in the NOA.  UFile asks, "HBP amount that should be repaid in 2022 (on HBP statement from CRA)".  I THOUGHT it meant how much I still OWED (which is called "Balance left to repay" on the NOA), but actually what it wants is the amount from the line in NOA that says "Minimum required payment".  When I got this straightened out, UFile stopped adding my balance left to repay as RRSP income received, which was putting my income $10,000 higher than what it actually is, and produced the result of me having to owe money but now I have a credit.  This could be a little clearer, if UFile used the exact wording that shows up on the NOA.  That would have been helpful.  It took a long time to figure out and I was stressing!  

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Hello Rebecca04110104

When you participate in the "Home Buyers' Plan (HBP)", you have 15 years to repay the withdrawals from your RRSP.

You must repay an amount each year in your RRSP, VRSP or PRPP, until the HBP balance is zero. However, your repayment period begins in the second year. Revenue Canada should inform you when your refund is due when you send your notice of assessment.

To make a repayment under the HBP (Home Buyers' Plan), you must contribute to your RRSP (Registered Retirement Savings Plan), PRPP (Pooled Registered Pension Plan) or VRSP (Voluntary Retirement Savings Plan) in the year the repayment is due.

Even if you cannot make a withdrawal from your PRPP/VRSP to purchase a HBP, you can designate your contributions as a HBP repayment.

For more information, please visit the following link:

Specifically, on page 15 at lines 7 and 8 "Repayments under the HBP and the LLP".

You have withdrawn funds from your RRSP and if you have contributed to a PRPP or VRSP, please follow the procedure below:

1. In the 'Left-side menu on the Interview tab'', select the ''RRSP contributions, limits''.

2. You must have contributed to your RRSP, PRPP or VRSP, in the period March to December, or in the period of January 1st to March 2nd of the following year.

3. Enter your contribution for the repayment of your HBP at the time of the payment made, either in the period "March to December 2022" or in the period of "First 60 days of 2023";

4. Return to the "Left-side menu on the Interview tab" and select "HBP, LLP and other plans and funds". On the screen to the right, choose "HBP Participation in an RRSP's home buyers' plan".

5. On the page that appears entitled "Home Buyers' Plan (HBP)", on the line "RRSP home buyers' plan repayable balance at start of 2019", enter the amount that appears on your Notice of Assessment from the previous year.

6. On the line "HBP amount that should be repaid in 2022 (on HBP statement from CRA)", enter the amount you must repay.

7. On the line "Amount of RRSP contributions designated as your 2022 HBP repayment", enter the amount you repaid to your RRSP, PRPP or VRSP.

8. If you have not contributed to your RRSP, PRPP or VRSP, enter $0.00 and the amount will be transferred to line 12900 of the Federal return and to line 154 of the Quebec return, to be added to your total income.

The HBP refund amount will be carried over by the program to "Part B of Schedule 7", on line 24600.

However, if you have also contributed to your RRSP, the amount of the total contribution will be reported to the "Part A of Schedule 7", on line 24500.

For more information, please consult the following link:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/what-home-buyers-plan/repay-funds-withdrawn-rrsp-s-under-home-buyers-plan.html

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  • 2 weeks later...

I have this same problem, but i can't find any solution.  I entered my RRSP contribution and the HBP designated amount, but uFile simply does not recognize that and shows $0 as my HBP repayment.  Anyone can help?

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