T4ARSP with a Box 16 entry

Recently, one of my clients was reassessed by CRA due to a wrongly presented entry on her T1. She is a senior (68) and she received a 2013 T4RSP with an entry in Box 16 (annuity). When I entered this, it presented  on her T1 on Line 129.

CRA says it should have been on Line 115, and they missed it (their problem which they will fix). Even though it presented on Line 129, Profile properly included it as pensionable income for pension splitting purposes.

It made no difference in her total income, but for whatever reason, CRA had a problem with it, and expects to see it presented on Line 115.

I have been using Profile for many years. I have made the same entry for this client for 5 years. It has presented the same way (line 129) and never been a problem before. Has something changed with CRA , and if so Is Profile aware of it?

Answer

1 person found this helpful

Hello, according to what we have found on the CRA's website and the way the product is meant to function, the amounts flowed correctly from box 16 in the T4RSP to line 129 on the T1.

There doesn't look like anything has changed regarding reporting this amount, based on the info we extracted from the CRA website. We recommend that you crosscheck with the CRA or, if you need further assistance, please contact us at 1-800-452-9970, submit a copy of the NoA and the return and we can have one of our tax analysts go over your return and try and discern if anything is amiss.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/129/menu-eng.html )

On line 129, enter the total of amounts shown in boxes 16, 18, 28, and 34 of your T4RSP slips.

Also include the amounts from boxes 20, 22, and 26unless your spouse or common-law partner made a contribution to your RRSP in 2011, 2012, or 2013. If this is your case, see Withdrawing from spousal or common-law partner RRSPs first.

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You may be able to claim up to $2,000 if you reported:

  • eligible annuity and/or pension income on line 115 of your return;
  • eligible pension income on line 116 of your return; or
  • annuity payments on line 129 of your return (box 16 of your T4RSP, Statement of RRSP Income slip), only if youwere 65 years of age or older on December 31, 2013, or you received the payments because of the death ofyour spouse or common-law partner.

For a more detailed list of eligible pension and annuity income, see the Eligible Pension and Annuity Income (less than 65 years of age) chart or the Eligible Pension and Annuity Income (65 years of age or older) chart.


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Jason Bray , Profile Care Manager

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