Personal Finance

Ufile question re RL-10 Quebec labour-sponsored tax credit CSN

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  • Apr 10th, 2016 8:05 pm
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Mar 8, 2006
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Ufile question re RL-10 Quebec labour-sponsored tax credit CSN

Please help and thank you in advance. I am helping out a friend and we are not sure about this section.

I am using ufile and if I enter the amounts for the Fondaction CSN fund (in 2015 $3846.40 and in 2016 $1153.92) up to and including step 5 (see steps below) he gets a credit for federal and quebec of approx $900.00. His income is approx. $50 000 and the RRSP contribution as per the assessment is approx. $57 000.

However, if I do step 6 and 7 (see steps below) he gets a credit of $2989.00.

The issue is that I am not sure if I need to do step 6 and 7. Am I over-claiming and what do they mean by if these shares are contributions to your RRSP? These shares are his contribution and are deducted from his paycheque, so technically they are his.

When I click the ? next to RRSP contribution eligible for the RRSP deduction this is what they write (Enter your RRSP deduction limit under RRSP, other plans -> Contributions to a registered retirement savings plan in order to get the RRSP deduction for your FTQ or FONDACTION shares. Do not also claim this amount on the RRSP contributions page otherwise the amounts will be doubled up. The amounts entered here are also claimed for purposes of the federal labour-sponsored funds tax credit on lines 413 and 414 of schedule 1 of your federal return.)

Steps:
5. However, if you contributed to the FONDACTION CSN fund, enter the amounts from Box G1 if you acquired the shares of CSN before June 1st, 2015. However, if you have acquired the shares after May 31, 2015, enter your contribution to the Box G2. The program will automatically calculate the credit of Box H and report it on the appropriate lines on both the federal and Quebec tax returns.

6. If these shares are contributions to your RRSP or your spouse's, you must specify it. To do so, go to the "RRSP'' section, on line ''RRSP contribution eligible to the RRSP deduction" , choose the option that applies to your situation from the drop-down menu.

7. Then, in the "RRSP contributions, limits" section under the "Left-side menu on the Interview tab", you must specify your RRSP deduction limit as per your latest Notice of Assessment sent to you by the CRA. You should not re-enter the information of the RL-10 in this section, has you have already entered the information on the RL-10 page under ''RL-10 - Québec labour-sponsored tax credit''.

Your deduction for your RRSP will be reported on line 208 of your federal return, as well as on line 214 of your Quebec tax return, and the tax credit for the labour-sponsored fund will be entered on line 414 of federal Schedule 1, as well as on line 424 of the Quebec return if applicable.
1 reply
Deal Addict
Jul 28, 2012
1028 posts
449 upvotes
Trois-Rivières, QC
boneca wrote: what do they mean by if these shares are contributions to your RRSP? These shares are his contribution and are deducted from his paycheque, so technically they are his.
The question is not "whether it's his money or not", but rather: "Are these RRSP or non-RRSP contributions?"
If those are indeed RRSP contributions, you should follow UFile's instructions (step 6 and 7), which brings me to...
boneca wrote: I am using ufile and if I enter the amounts for the Fondaction CSN fund (in 2015 $3846.40 and in 2016 $1153.92) up to and including step 5 (see steps below) he gets a credit for federal and quebec of approx $900.00. His income is approx. $50 000 and the RRSP contribution as per the assessment is approx. $57 000.

However, if I do step 6 and 7 (see steps below) he gets a credit of $2989.00.
The first amount ($900) would include the 35% tax credit for buying FONDACTION shares. Your friend is entitled to that whether the shares are RRSP or non-RRSP contributions.

The second amount ($2989) would include the 35% tax credit plus the RRSP deduction.

Edit: If those are RRSP contributions, make sure you haven't entered them both in the RRSP contributions page and in the labour-sponsored plan page.

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