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forgot to claim 1st 60 day '09 RRSP contribution to 2008 tax return

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  • Mar 23rd, 2010 10:00 pm
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Member
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Aug 17, 2009
240 posts
5 upvotes

forgot to claim 1st 60 day '09 RRSP contribution to 2008 tax return

While i prepare to file my returns, I have just realized that the contributions that i made in the first 60 days of 2009, were never claimed on my 2008 return.

What is the best course of action under the given circumstances ? As this amount is ofcourse now a part of my 2009 income however was never claimed on a tax refund.

I am quite new to RRSP and file taxes myself using UFILE. so am not sure if this is a twisted issue, or would it be as simple as adding this amount to the over all RRSP deductions.

All suggestions are much appreciated :)

Thanks
12 replies
Deal Guru
Mar 23, 2009
11653 posts
1470 upvotes
Toronto
Two options:

1) Amend your 2008 tax return.
2) Claim it for 2009.

I'd just recommend option #2. It's the easiest option. The benefit of RRSP contributions in the 1st 60s days of the year is that you can claim it in the previous year, or the current year. So claiming it for 2009 is perfectly legal.
[OP]
Member
User avatar
Aug 17, 2009
240 posts
5 upvotes
EugW wrote:
Feb 2nd, 2010 1:47 am
Two options:

1) Amend your 2008 tax return.
2) Claim it for 2009.

I'd just recommend option #2. It's the easiest option. The benefit of RRSP contributions in the 1st 60s days of the year is that you can claim it in the previous year, or the current year. So claiming it for 2009 is perfectly legal.

Wow, This is great information. So that would mean (if applicable) - I can claim all the RRSP contributed for 2009 from Jan.dec towards the 2009 return.

another quick question, given this condition, should i claim the RRSP that i have contributed in the first 2 months of 2010 towards 2009 return as well ?
Deal Addict
Oct 9, 2005
1787 posts
143 upvotes
inassod wrote:
Feb 2nd, 2010 2:00 am
Wow, This is great information. So that would mean (if applicable) - I can claim all the RRSP contributed for 2009 from Jan.dec towards the 2009 return.

another quick question, given this condition, should i claim the RRSP that i have contributed in the first 2 months of 2010 towards 2009 return as well ?
If you want to. It really depends what your taxable income was in 2008 vs. 2009. If it was pretty much the same then it doesn't really matter which year you claim it. But if it was different, you should see if you would be in a higher tax bracket in either year and claim it for that year so you get more % back.
Member
Oct 24, 2005
351 posts
16 upvotes
Mississauga
Just found out I forgot to report RRSP contributed in Feb 2009 when I did my tax return for 2008.

So the "Unused RRSP contributions available to deduct for 2009" in the assessment was wrong (much lower).

Can I just report those contributed in Feb 2009 as contribution made between Mar 3 to Dec 31 2009 now?

Is this ok with CRA?
Sr. Member
Dec 17, 2006
513 posts
45 upvotes
EugW wrote:
Feb 2nd, 2010 1:47 am
Two options:

1) Amend your 2008 tax return.
2) Claim it for 2009.

I'd just recommend option #2. It's the easiest option. The benefit of RRSP contributions in the 1st 60s days of the year is that you can claim it in the previous year, or the current year. So claiming it for 2009 is perfectly legal.
Do you have a link to prove this "benefit"? Because CRA says it must go on the 2008 return. Thanks.
Newbie
Mar 21, 2010
1 posts
ontario
How far can I go back with rev canada to claim my rsp contributions? I have not been putting down the contributions as I thought the tax was adjusted accordingly when I submitted my taxes on my T4's. turns out I think I should have been putting down the amount of contributions showing on my pay stubs at the end of the year, but instead i have not been doing so and likely paying the tax on the contributions
eg:
income 60,000
contributions 5,000
tax paid approx 11,200
when i filed my taxes each year, I would owe some money, but if i stated I contributed 5,000, I would not have had to pay about 1,300, correct? and I would have recieved a return most likely.
How far back can I go with rev canada??
please help me, i'm an idiot.
Deal Addict
May 19, 2004
1202 posts
139 upvotes
Burnaby
sandserson wrote:
Mar 23rd, 2010 2:46 am
How far can I go back with rev canada to claim my rsp contributions? I have not been putting down the contributions as I thought the tax was adjusted accordingly when I submitted my taxes on my T4's. turns out I think I should have been putting down the amount of contributions showing on my pay stubs at the end of the year, but instead i have not been doing so and likely paying the tax on the contributions
eg:
income 60,000
contributions 5,000
tax paid approx 11,200
when i filed my taxes each year, I would owe some money, but if i stated I contributed 5,000, I would not have had to pay about 1,300, correct? and I would have recieved a return most likely.
How far back can I go with rev canada??
please help me, i'm an idiot.
what you wouldn't have to pay would really depend on your income tax bracket. As someone mentioned previously if you've been making the same amount year after year, probably won't make much of a difference unless claiming the amount brings you down to a lower tax bracket. ie. say $56K is taxed at 30%, whereas $49K is 26%. If you used the $5K to lower your taxable earnings to $55K, then you'd be paying 26% on $55K, as opposed to 26% on $56k and 30% on $4K (the excess over the previous tax bracket), so you'd be paying an extra 4%. Hopefully that makes sense.

You could just amend your taxes for the previous years. Records need to be kept for 7 years, so i assume you can amend that many years back. In the past when i've forgotten a slip or two i've just added it onto the current year (although in my case it's only for 1 year and usually not a large amount). I've always webfiled as well so you don't need to provide receipts, etc. You could always call CRA and explain the situation and ask them what the best solution and/or your alternatives are.
zombie999 wrote:
Mar 1st, 2010 2:05 am
Do you have a link to prove this "benefit"? Because CRA says it must go on the 2008 return. Thanks.
you don't need a "link", it's common knowledge for those in the financial industry that all "first 60 days" mean is you can claim it for either previous year or current year. The first 60 days of the year is always the deadline for making contributions for previous year, although you can always claim it in the current year too. Google it if you must really find a link.
Deal Addict
User avatar
Apr 4, 2006
3394 posts
110 upvotes
like others say, the rrsp contribution u make just become "unsused contributions" that u can deduct on future tax returns.

Myself left just under 2k availible to deduct next year.
Deal Expert
User avatar
Feb 9, 2003
15396 posts
1246 upvotes
Langley
RRSP contributions within the first 60 days of a year must be claimed on the previous year's taxes. If anyone disagrees with that statement, back it up with proof from the CRA.

Find something official that contradicts this:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/ ... r-eng.html

Yes, you can report the contribution but let the deduction carry forward, as you can with any contribution. And yes, it's commonplace for people to incorrectly just include it in the current tax year. (There's really no advantage for the taxpayer.) So I don't really think that the CRA cares if this rule is followed, but you never know what will happen in an audit. The proper way is to file an adjustment for the previous year.

You can file an adjustment for this online.
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