Who should use the CRA Schedule 7 tax form?
This schedule is called RRSP Unused Contributions, Transfers, and HBP or LLP Activities. You use this form to report your prior unused contributions, current contributions, any transfers from or to the plan, any payments made to the home buyer plan (HBP), or lifelong learning plan (LLP). Unused RRSP contributions appear on your Notice of Assessment form.
Schedule 7 is divided into 6 different sections:
Part A includes all prior and current contributions:
- Report unused RRSP contributions from prior years: contributions you made in the prior year but you did not deduct them from your income
- Report new contributions from March 2nd to Dec 31st of the current taxation year, and from Jan 1st to March 1st of the following year (first 60 days from the next taxation year)
Part B includes Repayments under the HBP and the LLP:
This section is for taxpayers who have withdrawn funds from their RRSP to pay for a new home or to pay for education. Total any repayments you have to make to your HBP and LLP. These payments have to be allocated first from your total contributions before you can deduct the balance of the remaining contributions from your total income. If you don’t allocate the money to your HBP and LLP, the amount you have to pay will be added as an income online 12900 where you will be taxed on them.
Part C includes RRSP deductions:
- Report your deduction limit which you can find on your Notice of Assessment.
- Report any PRPP contributions if you have it set up with your employer. This amount reduces the deductions limit.
- Report all transfers from other registered accounts. The transfers refer to income that was transferred into an RRSP from a registered retirement income fund (RRIF), PRPP, SPP, or transferable retirement allowance. Your deduction limit is not reduced by this amount.
- Determine how much from the balance of the contributions in part B you wish to deduct and how much you wish to carry forward. The amount you wish to deduct report it on line 20800 of your Income Tax and Benefits return
Part D records the part of your contributions you will carry forward to next years
From the Part C, determine the balance of your contributions which you wish to carry forward to the following years.
Part E includes new withdrawals from your RRSP under the HBP and LLP:
- Report the amount of HBP and LLP you withdrew during the taxation year
- Tick the box that corresponds to the T4RSP slip you have received for these withdrawals
Part F includes contributions to amateur athlete trusts:
If you have received income from your performance as an amateur athlete and deposit it in a tax-free account during your career. You will need to report this income since it qualifies as an earned income for the purpose of calculating your deduction limit.
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