T4RSP Box 20 - Refund of unused contribution

Tax Topics
1

I have a new client who did her own taxes every year. Last year, she over-contributed to an RRSP and then realized she did. She withdrew the overcontribution within two months.
This year, she received a T4RSP and an amount of $7331 in box 20. When I enter this amount in the software, Taxcycle suggests to “Consider claiming an offsetting deduction on line 23200”.
I checked the client’s account for last year, and I see she claimed only $800 in RRSP.
The client stated that CRA reassessed her tax return, but I do not see a reassessment. I see the same amount of $7331 was included in her tax return line 12900 and the over contribution was refunded to her by CRA.

How would I know the offsetting amount to be claimed in line 23200? Also in the instruction page of T4RSP, box 20, it says "enter the amount in line 12900 and include a copy of the approved form T3012A. I found this form in the Taxcycle but not sure how to complete it.
Thank you in advance for your help.

2

The form you want is T746 not T3012A. T3012A is for getting out of withholdings at source before you withdraw the excess contributions. T746 is to save RRSP room when you didn’t use a T3012A before making the withdrawal.

3

T746 doesn’t affect RSP room. It determines the amount of the offsetting deduction for undedicated contributions showing as income on the T4RSP.