Tax question

[Anonymous]

So we used the first time home buyers when you can pull out your RRSP and I guess I've been doing my taxes wrong, how do you put this in your taxes for repayment.

[strongmommy]

Hi there

I'm not sure when you withdrew or why you think you're not doing it correctly but ..... you fill out schedule 7. The following is from CRA's website and explains it pretty well.

Over a repayment period of no more than 15 years, you have to repay to your RRSPs the amounts you withdrew under the HBP. Generally, for each year of your repayment period, you have to repay 1/15 of the total amount you withdrew, until the full amount is repaid to your RRSPs or PRPPs. Your repayment period starts the second year following the year you made your withdrawals.
To make a repayment under the HBP, you have to make contributions to your RRSPs or PRPPs in the year the repayment is due or in the first 60 days of the following year. Once your contribution is made, you can designate all or part of the contribution as a repayment under the HBP.

To designate your repayment, complete lines 245 and 246 of Schedule 7, RRSP and PRPP Unused Contributions, Transfers, and HBP or LLP Activities and file it with your income tax and benefit return. You have to do this even if you would not otherwise have to file an income tax and benefit return for the year.

If you withdrew the money more than three yrs ago then CRA will automatically add the correct amount to your total income for the year .... if you contributed to your RRSP in the year you can designate some (or all) of this amount against the income included. You don't have the option of including MORE than 1/15th of the amount each yr ....

Let me know if you have any other questions .....

[/wasn't me/]

You don't have the option to oay back more then 1/15? Really? I think we've been attempting to do just that and thought we were, why can't you?

[strongmommy]

You don't have the option to oay back more then 1/15? Really? I think we've been attempting to do just that and thought we were, why can't you?

yes you can ..... my brain thinks of 'repaying', as bringing the amounts into income but the rest of the world doesn't think like me and instead correctly thinks of it as re-contributing by adding money back to your RRSP - which it is and which you can do as much as you like!

sometimes when you have very little income in a yr it would be nice to "re-pay" more by adding more to your income (when you're still under the basic threshold or in school or maternity leave and in the lowest tax bracket temporarily etc) but that's not allowed because it's too much of a benefit I've thought of it and checked the rules and THAT you can't do!

Sorry I confused it!