Brndn Posted March 6 Report Share Posted March 6 Hi all, I have contributed $8000 into the FHSA for 2023, and also purchased a property (made a qualifying withdrawal) in the same year. My understanding is that the withdrawn amount should be non-taxable (since it is a qualifying withdrawal), and I also should get the benefit of a tax deduction on my income since this is also a qualifying withdrawal. Is my understanding correct here? I'm not seeing any FHSA deduction on income show up in my UFile Review tab. For the information I entered: - "T4A, T4FHSA and pension income" -> T4FHSA - entered line 18 (contribution), and line 20 (qualifying withdrawal) - "HBP, LLP, FHSA and other plans and funds" -> FHSA information and limit - $8000 entered into both boxes I only seem to see Line 20805 in the Review tab if I do not fill line 20 (qualifying withdrawal), but cannot find any federal resources that say I am ineligible to claim income tax deductions if I make a qualifying withdrawal (only in the event of designated withdrawals is this the case). Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 6 Report Share Posted March 6 Hello Brndn, General information on FHSA The FHSA is a tax-free savings account that lets you open an account and contribute up to $8,000 per year. FHSA contribution lifetime limits allow you to contribute up to $40,000 for your first home. If you don't contribute the max $8,000 for one year, the remaining amount (called your FHSA carryforward) carries over to the next year subject to the maximum carryforward amount of $8,000. Your FHSA account will remain open for 15 years or on December 31 in the year you turn 71, whichever happens first. If you don't use it for a home, — you can do a tax-deferred transfer to your RRSP or RRIF. Who can contribute? You are a qualifying individual if you meet all the following requirements at the time the FHSA is opened: Prospective first-time homeowner Canadian resident You have to be at least 18 or 19 years of age (depending on your province or territory) You or your spouse can't own a home in which you lived, at any time in the year the account is opened or during the previous four (4) calendar years When you contribute to an FSHA, you will receive a T4(FSHA) tax slip [as well as a Relevé 32 if you reside in Québec] from your financial institution. To enter your T4(FHSA) slip into your tax return, please follow the steps below: 1.In the “Interview” section, click on the “Interview setup” page on the left side of the screen. 2.On the “Interview setup” page, scroll down until you see the option: “Pension income, other income and split pension income, COVID-19 benefits (T4A, T4FHSA, T4A(OAS), T4A(P), T4A-RCA, T4RSP, T4RIF, T1032)”. 3.Place a check mark next to it and click the blue radio button, and the page will jump directly to the “T4A, T4FHSA, Pension and retirement income” page. 4.On the “T4A, T4FHSA, Pension and retirement income” page, select “T4FHSA – First home savings account statement” by clicking the little plus sign (+) to the right. 5.On the "T4FHSA - First home savings account statement" page, enter your information from the slip onto the page. 6.Click “Next” at the bottom of the screen to continue. 7.Return to the left side column of the screen and click on the "Interview setup" page and scroll down till you see "RRSP, HBP, LLP, FHSA, other plans and funds (T5006)" and click on the blue button. The page will jump directly to the page “HBP, LLP, FHSA, and other plans and funds”. 8.On the “HBP, LLP, FHSA and other plans and funds “ page, select “FHSA information, limit” and fill in the page. *Deduction on T1 Line 20805 – FHSA deduction Note: If you wish to limit the deduction of your contribution, add the amount to deduct on the second line. The remainder will be carried forward to use next year. Keep in mind that the carry forward plus the yearly contribution cannot exceed $8000. Leave the third line blank until you have withdrawn money from the T4FHSA to purchase a qualifying home. The deduction will appear on Federal line 20805. For more information on this topic, please refer to the link below to the Canada Revenu Agency. https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/first-home-savings-account/application-package.html If you are a resident of Quebec, the deduction will appear on line 215 of your Quebec tax return. For more information from the Revenu Québec website, please click on the link below: https://www.revenuquebec.ca/en/citizens/income-tax-return/completing-your-income-tax-return/how-to-complete-your-income-tax-return/line-by-line-help/201-to-260-net-income/translate-to-english-ligne-215-deduction-pour-celiapp/ https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/rl-32-t/ Quote Link to comment Share on other sites More sharing options...
Brndn Posted March 7 Author Report Share Posted March 7 Hi, I have followed the steps. I seem to still be missing line 20805 from the review section. - "T4A, T4FHSA and pension income" -> T4FHSA - entered line 18 (contribution), and line 20 (qualifying withdrawal) - "HBP, LLP, FHSA and other plans and funds" -> FHSA information and limit - $8000 entered into both boxes It still seems like line 20805 is missing from the Review section... Does having a qualifying withdrawal make me ineligible to receive income adjustments for the FHSA for that year? I couldn't find federal resources that outlined this behaviour. Quote Link to comment Share on other sites More sharing options...
Geo123 Posted March 7 Report Share Posted March 7 Hello Brndn, Please contact UFile Support so we may review the file confidentially. Please include above note. Please open a request ticket and submit an anonymous file for review on-line at https://www.ufile.ca/contact/contact-us Quote Link to comment Share on other sites More sharing options...
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