Personal Finance

StudioTax 2020 RRSP Contribution

  • Last Updated:
  • Apr 7th, 2021 9:05 am
[OP]
Newbie
Feb 15, 2021
3 posts
1 upvote

StudioTax 2020 RRSP Contribution

Can anyone tell me how to correctly fill out RRSP contribution in StudioTax?

I'm trying to finish my 2020 taxes. I contributed in February last year then again in June. When I go to my investments, there are two tax forms. One for Jan-Feb contributions and one for Mar-Dec contributions. But in StudioTax, it only gives me Mar-Dec as an option. Why can't I enter my Feb contribution?
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9 replies
Deal Addict
Oct 24, 2010
2242 posts
2074 upvotes
Ottawa
Jan - Mar 2020 had to be filed in your 2019 return. If this is for Jan - Mar 2020, file a T1 Adjustment request for your 2019 return.

If you mean Jan-Mar 2021, it's the box below what you've circled.
[OP]
Newbie
Feb 15, 2021
3 posts
1 upvote
I'm confused. Why wouldn't I file all my 2020 RRSP contributions to my 2020 tax return?

Edit: Okay, I figured out what happened. For the past few years, when I got a bonus, my employer paid out the bonus in March. But this year, they paid it out in Feb, so, I have to file my Feb 2020 bonus with my 2019 tax return.

Thanks.
Deal Addict
Oct 24, 2010
2242 posts
2074 upvotes
Ottawa
MonsterCable wrote: I'm confused. Why wouldn't I file all my 2020 RRSP contributions to my 2020 tax return?

Edit: Okay, I figured out what happened. For the past few years, when I got a bonus, my employer paid out the bonus in March. But this year, they paid it out in Feb, so, I have to file my Feb 2020 bonus with my 2019 tax return.

Thanks.
My wife receives an employer RRSP contribution early in the year. We're always holding our breath on whether it gets paid out in time to meet the RRSP deadline.

But, yes, RRSP contributions filed with your taxes are based on the RRSP season: March in the year of the tax filing to Feb in the year after (ex: March 2020 - Feb 2021 for the 2020 filing).
Deal Addict
Oct 24, 2010
2242 posts
2074 upvotes
Ottawa
I should add....

When you file your adjustment, you don't need to use what was contributed in February of 2020 on your 2019 taxes. You can carry over that tax deduction and use it on your 2020 tax filing if that gives you more benefit.

You'll get a Notice of Reassessment in response to your adjustment request. That will give you your revised contribution room and, if applicable, deduction carried over. If you choose to claim it on the 2019 filing, you'll get a tax return. You may need to wait until you receive that Notice before filing your 2020 taxes.
Newbie
Nov 20, 2016
50 posts
8 upvotes
MonsterCable wrote: I'm confused. Why wouldn't I file all my 2020 RRSP contributions to my 2020 tax return?
I actually have exactly the same question, and it was never answered in this thread.

I always assumed that contributions made between January 1 and March 1 can be assigned as a contribution to either that or the previous tax year. This is first year I am looking to assign a contribution made in January 2020 to the 2020 tax year, and am noticing the wording in StudioTax is as posted in the OP.
Deal Addict
Oct 24, 2010
2242 posts
2074 upvotes
Ottawa
CraigRFD wrote: I actually have exactly the same question, and it was never answered in this thread.

I always assumed that contributions made between January 1 and March 1 can be assigned as a contribution to either that or the previous tax year. This is first year I am looking to assign a contribution made in January 2020 to the 2020 tax year, and am noticing the wording in StudioTax is as posted in the OP.
The RRSP contribution year starts on the 61st of the year, not on Jan 1. You need to report the first 60 days (generally Jan 1 to March 1) RRSP contributions on the previous year's return, but it can be considered as a contribution for either year, and claimed as a deduction for any year after it's contributed.

  • Report your Jan 1 - March 1 2021 contributions on your 2020 taxes.
  • The contributions will reduce your contribution room for either 2020, if you still had contribution room as of December 31, 2020; or 2021 if you had used up all of your contribution room by the end of 2020.
  • Once reported, and provided you had enough contribution room, the contributions become "contributions available to deduct". The earned RRSP deduction can be used to reduce your taxes for any taxation year 2020 or later.

If you neglected to claim your first 60 days' RRSP contributions on the previous tax year's return, you'll need to file an adjustment to do so.

I'll use my wife as an example.

She had $12k in contribution room for 2020.
She added $12k to her RRSPs by December 31, 2020.
In February 2021, she added $3k to her RRSPs.

She showed $15k in contributions on her 2020 taxes. Her 2020 contribution room was used up. She had $3k leftover ($12k in 2020 room - $12k contributed in 2020 - $3k contributed in first 60 days of 2021).
She earned $14k in contribution room for 2021, based on 18% of her income.
The $3k she had contributed in February 2021 reduced that to $11k remaining ($14k room earned for 2021 - $3k in first 60 day of 2021 contributions).
Her NoA shows that her available 2021 contribution room is $11k.
Sr. Member
May 24, 2018
599 posts
416 upvotes
Ontario
@CraigRFD @MonsterCable
Why wouldn't I file all my 2020 RRSP contributions to my 2020 tax return?
You *must* file your contribution(s) accordingly base on the contribution dates ➡ Schedule 7 Part A - Contributions ⬅ No choice.
That said you get to decide if you want to deduct *all* to 2020 tax year income.

So, why wouldn't I deduct all my 2020 RRSP contributions to my 2020 tax return?
  • Deduct or not deduct, the contributed amount is already growing in a tax-sheltered account.
  • Somebody in the 20.5% tax bracket 2020 (T1, Step 5 - Fed tax, Part A) & said he's expecting to land in the 26% tax bracket in 2021, then deferring the deduction may make sense with that scenario.
Hope this helps
Deal Addict
Oct 24, 2010
2242 posts
2074 upvotes
Ottawa
hwyc2007 wrote: @CraigRFD @MonsterCable


You *must* file your contribution(s) accordingly base on the contribution dates ➡ Schedule 7 Part A - Contributions ⬅ No choice.
That said you get to decide if you want to deduct *all* to 2020 tax year income.

So, why wouldn't I deduct all my 2020 RRSP contributions to my 2020 tax return?
  • Deduct or not deduct, the contributed amount is already growing tax-sheltered.
  • Somebody in the 20.5% tax bracket 2020 (T1, Step 5 - Fed tax, Part A) & said he's expecting to land in the 26% tax bracket in 2021, then deferring the deduction may make sense with that scenario.
Hope this helps
I maxed out my RRSP contributions for 2020. $16k submitted as contributions.

But I also had $20k in moving expenses that significantly dropped my taxable income and marginal tax rate.

I punched the numbers, and it made financial sense for me to push that $16k deduction to another year based on the bracket I'm in. So my NoA shows an unused $16k that I can deduct on next year's taxes (actually, based on my ROI calculations, it'll be split over the next 3 years).
Deal Fanatic
Aug 31, 2010
5944 posts
4293 upvotes
CraigRFD wrote: I actually have exactly the same question, and it was never answered in this thread.

I always assumed that contributions made between January 1 and March 1 can be assigned as a contribution to either that or the previous tax year. This is first year I am looking to assign a contribution made in January 2020 to the 2020 tax year, and am noticing the wording in StudioTax is as posted in the OP.
Cole's notes of the other posters: first 60 days' contributions need to be filed with your previous year's tax return (e.g. first 60 days of 2020 need to be filed with 2019 return), however you do not need to claim the deduction at that point. RRSP deductions (the act of reducing your taxable income by said amount) can be carried forward indefinitely.

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