This is a particularly great year to add LPP repayment to my client’s income. He is required to pay back $1496 but if I bump that up to $10,000, his refund has virtually no change. It would seem wise then to opt for a higher payback (not RRSP contribution but addition to income)
Does anyone know if there are limits to the amount that can be claimed as payback?
In TaxCycle, I selected that I wanted to pay back a different amount but the claim stayed as the min repayment. When I overrode that line ($10,000 instead of $1496) it worked but I do not know if it is allowed and I cannot find anything on CRA.
I assume you mean LLP (and not LPP)?
Taxcycle is correct.
For an explanation of how the LLP works, you are probably looking for this on CRA:
“https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/lifelong-learning-plan.html”
Thank you. The CRA limits the amount to be declared as income to the amount that you were required to pay.
" If you designate an amount less than the amount you have to repay, you have to include the difference in your income on line 12900 of your income tax and benefit return. The amount you include in your income is equal to the amount you have to repay minus the amount you designate as a repayment for the year. The amount you include in your income cannot be more than the result of this calculation."