I am on the RRSP page and client has a required HBP repayment of $661. Client wants to repay total balance of $6067. I choose “Yes” to “Do you wish to repay a different amount?” but the Designated repayment on line 12 does not populate. It remains at $0. I thought i may need to complete it on S7 on Line 7 but when i type it in, it is an override, when i double click on this box it takes me back to the RRSP page line 12. Only way i can get this to work is to override Line 12 on the RRSP page. Any suggestions on what i may be missing?
Thanks in advance for sharing your knowledge.
Did the client make a $6067 RRSP contribution during the period from March 2nd 2018 to March 1st, 2019? If so, they should be able to allocate any amount as a HBP repayment. If, however, they have a carry forward of previously undeducted RRSP contributions these can not be designated as a HBP repayment. You can only repay a HBP balance with a current year contribution.
That may or may not explain why TaxCycle is not allowing a different amount on the RRSP worksheet. You don’t need to complete anything on S7. The software seems to work fine for me if the Homebuyers Plan section is completed.
I’m having this exact same problem as Rosanna with Line 10 refusing to populate and staying at $0.00, thus not allowing the Line 11 repayment amount from being claimed. I CAN do this in PROFILE with no issues even with the Required repayment amount = $0.00.
In my client’s case, my client withdrew $12,400 the HBP payments in 2020, and also contributed $12,250K during the same year to her RRSP’s. $1,000K were not claimable because they were contributed during the 89 days prior to the withdrawal. She didn’t realize her Deduction limit was only $7,200, so over contributed. Thus we need to apply apply the amount overcontributed to the HBP so as not to be subjected to the additional tax.
Is this a BUG in TaxCycle, especially considering that I can easily do this in Profile with no issues, but not allowed without overrides in TaxCycle? @Cameron, any thoughts?
i will be 0 as they do not have to start payback for two years after withdrawal so just override line 12. with the amount from line 11 then check the carryforward and see if everything looks right for RRSP carry forward
Yes, that’s what I did in order to get it to work. Everything shows up properly on Schedule 7 with the Line 12 override. I’m just surprised that TaxCycle allows the YES repayment option in Line 11, but doesn’t include it if Line 10 is $0.00. Seems counter-intuitive to me, and has wasted a fair amount of my time trying to understand why and doing comparisons with Profile.
Same thing with the wording for Line 12 showing HBP WITHDRAWAL vs HBP CONTRIBUTION.
That’s two issues with that same section. I can see why its beneficial to have a 2nd tax program to make comparisons to help debug these issues. Just hope changes are made here so we don’t have to do this debugging.
Thanks for the suggestion, we will take a look at making this change.
It seems I don’t have any of your issues with this other than “HBP Withdrawal” text.
Maybe I’m missing something or other underlying issue.
Our last release, TaxCycle 10.1.42420.0, addressed the wording issues for the HBP and LLP withdrawal.
Thanks, Marcel …
My issue is that this is the 1st year of the HBP … it’s the year the withdrawal is made, thus the HBP Balance as per Notice of Assessment is $0.00 since the taxpayer has 2 years to start their first payment.
Since my taxpayer isn’t required to make any repayments, TaxCycle doesn’t allow repayments to be made, thus the override is required despite the flag being set to YES suggesting the client wants to make a repayment anyway.
Thanks for the note, @darlene.
Can you provide a snapshot of what wording you replaced?
My version is up-to-date, version 10.1.42420.0, and I’m still seeing the old text on HBP Line 12 and applies also Line 12 of the LLP :
“HBP “ withdrawal ” within 89-day period of having contributed to RRSP’s”
vs the word “Contributed” within 89 days …
Do I need to uninstall and re-install TaxCycle in case it didn’t update properly?
I apologize, that change didn’t make it in to this release as I had thought. It will be there for the next release which we hope to have next week. Sorry for the confusion. Here is what it will look like:
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Yes I see that but I’m just wondering if CRA would really care whether HBP balance is on 2019 NOA or not. Certainly it would be on the taxpayer’s CRA account.