I am getting an error stating "RRSP - Non-refundable credits exceed tax; consider reducing the RRSP deduction." I have reduced line D < 2018 limit and it's still there.

Contributions in the year - 9800

Deduction limit - 7603

I've reduced my deduction to 600 and then the error goes away, otherwise it stays.


This notification is warning you that you do not need to deduct the RRSP contributions as they will not reduce your federal or provincial taxes.  It is better to save the RRSP contributions unused for future years.

If you look at line 420 before you change the RRSP contribution I believe it would be zero.  After you reduce it to 600 (or below) I would guess it would change line 420 to show tax owing.  You should find the sweet spot for which you would not 'waste' your RRSP contributions (looking at lines 420 and 428).

All of the above being said, it does sound like there is an over contribution on the RRSPs and you should look into filling out form T1OVP.  If the numbers mentioned in your question are correct, you have over contributed to your RRSPs.  You are allowed to go over your RRSP limit by up to $2,000, but 9,800 - 7,603 = 2,197 which is over this allowable limit.

Hope this helps

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