taxhelp

[Ceili]

I have over contributed to my RRSP amount for the tax year 2023.

I have $12,000 worth of unused RRSP room.  I contributed $15,000 by mistake.

I have not included any of this in my initial filing with CRA. Can I only claim $12,000 from the amount invested? Should I wait until 2024 and then claim the total?

Looking for advice to avoid penalties

[Geo123]

Hello Ceili,

CRA allows overcontribution up to $2,000 lifetime - nothing to do BUT keep it in mind for next year and do not overcontribute again.
If you end up with an RRSP over contribution in excess of the $2,000 lifetime buffer, you may owe taxes. The CRA will charge you a 1 percent penalty, assessed monthly, for each month you're over the limit.
Use the T1-OVP
‘2023 Individual Tax Return for RRSP, PRPP and SPP Excess Contributions’
https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1-ovp.html
 

[Ceili]

Thank you......Do you know if I claim on my 2023 taxes only part of what I contributed to my RRSP?

contributed $15,000.   Can I only list $12,000 on my taxes?

[clw]

Unfortunately not. Occasionally CRA will waive penalties if the overcontributions are due to an error in the calculated equivalence factor. Otherwise you will need to complete a T1-OVP with a 1000$ (3000-2000) overcontribution.

[Geo123]

Hello Ceili,

To limit the current year contribution and carryforward to next year (IF within the RRSP limit for the year) :
RSP or PRPP/VRSP deduction to use in 2023
RRSP or PRPP/VRSP deduction to use (leave blank to use all your contributions as a deduction)  [  amount$]