We made an error of shorting $100 of RRSP contribution in 2019 for a client. Should I file a T1 adjustment before filing 2020, or wait until 2020 is filed then do an adjustment?
Thanks
RRSP contribution slips for the 1st 60 days of the year are always slow to come in. I have several clients each year thinking they have all their slips and we file their return. Next year they come in with a slip for the 1st 60 days belonging to that previous year and we need to file an adjustment. Happens a lot.
I typically refile that previous year’s return first, then update my 5 year summary for the current year, as well as check if there are any updates to the RRSP contribution limit for the current tax year so that it is accurate on the 2020 client letter and summaries. CRA will accept it both ways (sending it before or after the 2020 transmission).
Thanks. Adjusted online through Rep a Client as I used Profile last year. Had the client e-signature a T1Adj that I populated on Taxcycle. I believe all T’s are crossed and I’s are dotted.
Regards,
Hi Gerry
With the missed RRSP contribution, do you include it in the new return after filing an adjustment or have you waited for the following year?
Thanks and enjoy this spring weather.
I’m not sure I understand your question.
If you already filed an adjustment on the 2019 return to claim that missed contribution, why would you include it in this year’s 2020 tax return? Once it is claimed, it’s claimed. You can’t re-claim it again on another return. The only thing thing that I would do on the 2020 return is adjust the 5 year summary to show the increased RRSP contributions on Line 20800. This way the 5 yr summary matches the results of the adjusted 2019 tax return.
RRSP contributions … I occasionally clients who bring back slips where were used the previous year. Now record the numbers on the slips to check.
We generally add unused portions of contributions the following year which helps motivate the client to bring all his slips
“RRSP contributions … I occasionally clients who bring back slips where were used the previous year. Now record the numbers on the slips to check.”
This is utterly impossible.
“March to December” slips MUST be reported on the tax return for that year. (ie Mar-Dec 2020 on the 2020 T1)
“First 60 days” slips MUST be reported on the tax return for the immediately preceding year. No exceptions. (ie Jan-Feb 2021 on the 2020 T1).
If someone now brings in Jan-Feb 2020, it CANNOT go on a 2020 T1.
(In such a case, 2019 T1 would need to be refiled and reassessed first).
(I believe that CRA had published that reporting requirement elsewhere before also, but I cannot seem to locate it now - However, the requirements of Schedule 7 do state it for TY 2018 and subsequent).
Not impossible at all, if you re-read the original post. What the OP is saying is a recommendation to record the slip # so can verify that they reported last year
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Of course its impossible to double-record as between years.
If the taxpayer neglected to bring in all his slips the previous year, thats on him, and the taxpayer should be prepared to provide all slips about his mistake to the tax preparer if he wants his prior-year return reassessed.
Slip numbers may be helpful in a CURRENT time period if there are duplicate contributions on the same day.
I did a T1adj to 2019 for a client who had 2 RRSP contribution slips from 1st 60 days of 2020. Now CRA is asking for a copy of Schedule 7 and copies of receipts. I sent her copies of the receipts she provided me with.
How many of you send out T1 generals and all Schedules to your clients?
I do, as I believe that they should have a copy for their records. Anyone else?
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I also give my clients a complete copy of their tax return, which includes the full T1 jacket, all schedules, and some of the other information forms. I too believe that the client should have this information.
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In the interest of cutting down on paper waste, we asked our clients if they wanted full printouts and the vast majority said they file the client copy folder we give them and never look at it again…ever lol. All our clients know they can call me any time if they need a full copy in the future for one reason or another.
Naturally, we do give full copies to the few clients that want them. Everyone else, gets a 2-year summary, T1summary, slip summary, and any schedules used with documentation attached, as well as anything they sign.
Mine get complete copies electronically. I have a few that need complete paper copies but that is only 2% of so of my clients.
I send some returns by eCourier and most of the time they don’t get opened. I give most of mine copies of the returns and some relevant schedules as well as all documents they supplied.
Is there a built in PDF Printset that includes T1 jacket and used Schedules?