I have a client who left her job and $2,000 was transferred directly into her RRSP.
She has a T4 with box 66 ($2,000). How to enter this in TaxCycle?
I don’t see zero on RRSP contribution available as a transfer in RRSP form !!
2000 $ is included on income ligne 13000 but not deducted. Thank you
Possible that it is included in income already, box 14, and then receive an RRSP contribution slip for the same account.
Alternatively, click back through from line 13000:
Filling out your income tax and benefit return
The eligible portion of your retiring allowance will be reported in box 66 of your T4 slip and box 67 will show the part of your retiring allowance that is not eligible. On a T3 slip, the eligible part of a retiring allowance appears in box 47.
Report the retiring allowance shown in boxes 66 and 67 of your T4 slip, or in box 26 of your T3 slip on line 13000 of your income tax and benefit return.
Claim a deduction for the amount you transfer to your RPP on line 20700 of your income tax and benefit return. Claim a deduction for the amount you transfer to your RRSP on line 20800 of your income tax and benefit return. Write the amount of the transfer on line 24640 and in box 15 of Schedule 7.
Box 66 on the T4 is not included in Box 14.
You enter the T4 in TaxCycle by entering the amounts in the T4 input screen.
Do i have to insert a ligne in RRSP contribution 2000 $ ?
Yes, you need to insert the RRSP contribution of $2,000. An employee can receive an Eligible Retiring Allowance but decide not to contribute the amount to an RRSP. The two events (receiving a retiring allowance as income and transferring the amount to RRSP) are mutually exclusive. The client should have an RRSP receipt for the amount that was transferred/contributed to his RRSP.
1 - You need to enter the T4 slip as you normally would, including the amount in Box 66.
2 - You enter the official RRSP contribution receipt in the RRSP Contributions Worksheet just like you would enter any other RRSP contribution.
3 - On that same RRSP Contributions Worksheet you scroll down to the area that says “RRSP Transfers” to check that the software has automatically included the amount from Box 66 of the T4 slip in the box that says Eligible Retiring Allowances - T4 Box 66.
If entered correctly the software automatically does everything for you. It claims the RRSP deduction as a retiriing allowance transfer rather than impacting the client’s RRSP limit.
Realistically that’s all you are doing; making an RRSP contribution without the contribution impacting or using any of the client’s RRSP contribution limit.
Thank you very much
So i’m missing rrsp receipt from client.
The client definitely needs an RRSP contribution receipt.