Client over-contributed $6800 into RRSP in 2019. T1OVP was filed as well as T3012A for refund of excess contributions.
Client withdrew $4900 in July 2020, on his own, with income tax deducted on the withdrawal. However he did this before the filed paperwork to/from CRA was processed.
When he received CRA’s response letter (late September 2020) where it states they accepted his request for waiver, assuming the withdrawal would be for the full $6800; leaving him with a $0.00 over-contributed amount for 2020 as indicated on his CRA account.
From what I can tell, his RRSP issuer never processed the T3012A as client had already withdrawn $4900.
So, in reality he still has a $1900 unused amount for 2020.
Tried to request adjustment in October 2020 through “submit documents” but was denied for
" incompatible Ref# "
Letter was sent to CRA in November requesting an adjustment, which by all accounts, is still missing in action.
Client’s deductible room for 2020 is $768. T4RSP shows the correct $4900 withdrawal for 2020.
Tried to Efile his 2020 return using is deduction limit against the $1900 over-contribution but it was rejected by CRA, citing error 2197 (deduction cannot exceed over contribution amount on file).
Obviously adjustment was never done… and yet another letter sent.
Awaiting the response which may come sometimes in the future, could I just choose to omit the $768 deduction on the RRSP worksheet and carry over the full $1900 over-contribution to next year?
(at which point I hope CRA will have time to adjust)
You might have to convince the CRA to reverse the T3012A and file a T746 in lieu this year.
Convince the CRA!!! I spent more than 5 1/2 hrs. on the phone today being transferred from one clueless agent to another. Basically was told I should’ve applied to have the T3012A cancelled after receiving their reply last September … which I did in November (that’s the letter that is still MIA) after trying to submit the same in October via RAC’s submit document (which was denied for incompatible REF #).
Now they want me to re-submit the requesting letter. Tried via “submit document” 3 times today with same result, except different error : "Service not available at this time. Please try again later".
Called Efile help, 2hrs. wait, clueless agent first blamed my browser (Microsoft Edge) - tried with Google Chrome same result, speechless agent; told to clear my browser cache - same result; told to restart my computer (as if that’s going to help … but I played along) , same result.
Finally exausted agent’s excuses repertoire; asked me dozens of questions including the name of my first girlfriend … (Brenda); was told an agent would call me back within the next 3 days for troubleshoot…
I’m afraid to leave my phone/computer for fear of missing the call and having to go through " Your call is important to us …"
T746 is ready to be filed with 2020 return but …
Line 20800 (RRSP deduction) cannot exceed the unused RRSP/PRPP/SPP contributions available from previous years plus line 24500 (total RRSP, SPP, and PRPP contributions) minus line 24600 (contributions designated as a repayments under the Home Buyers’ Plan) minus line 24620 (contributions designated as a repayment under the Lifelong Learning Plan).
Efile transmission denied. error 2197
Thanks for the reply Cory … I’m just going to sit here … at the ready for THE CALL … can you tell I’m somewhat irritated ?
By the way … while I’m sitting here … would there be anybody else with the same RAC “submit documents” issue?
Or is it just my bubbling personality?
The agent’s comment “restart your computer” reminds me of a British comedy series, “The IT Crowd.” Their first answer is “Have you tried turning it off and on again?” Seriously, though, it’s at this point I would think about the advisability of going to the beach and walking out into the Atlantic in the general direction of Europe.