MartinL Posted March 25, 2023 Report Share Posted March 25, 2023 Hello, In 2020 my wife and I bought a condo and she withdrew $8000 from her RRSP through the HBP program. This year for the 2022 taxes she is supposed to start paying it back, but in 2022 she had no income (went back to study). Since she has no tax to pay this year anyway, I am thinking she could declare the entirety of the $8000 as income to repay her HBP, and she would still have no tax to pay since it remains under the minimum threshold for paying taxes. This would save on future taxes when she has an income again. My question is: do you know of anything that would make it illegal to do this? It seems ok based on what I read on the HBP, but this specific case is never directly addressed, and I want to make sure it would not be considered tax evasion or something like that. Thank you for your help ! Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 26, 2023 Report Share Posted March 26, 2023 Hello MartinL, You can not arbitrarily decide what amount to "declare" as income, you will pay tax on the minimum amount for the year. Quote Link to comment Share on other sites More sharing options...
MartinL Posted March 26, 2023 Author Report Share Posted March 26, 2023 Hi Geo123, I guess that would have been too easy Thank you for your fast answer. Martin. Quote Link to comment Share on other sites More sharing options...
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