I deferred my 2018 bonus to 2019 and part of my bonus (lets say X ) went to RRSP directly with out any tax cuts
myCRA already has this X amount of contribution slip
Now im trying to submit my taxes using simpletax/turbotax and I selected to import details from myCRA
when I imported, tool also imported X amount of group RRSP and calculating a return on it
Should I delete this group RRSP while submitting ? As i didnt pay any tax for this X amount of group rrsp, im not supposed to get any return right ?
Do you have company RRSP matching? If yes, you have to declare your company's match as a taxable benefit for that year's income (2019?) . Should be on your T4. You can then deduct any amount of the total contributions made to your RRSp (by you and your co) in 2019 on your 2019 return.
no Jimmy, my company does not matches RRSP. Part of my bonus goes to group RRSP and only advantage is immediate tax benefit
so its not to better this during tax submission ?
because as soon as I add this amount in simpletax, my tax return is increasing
I don't really understand the question. You made contributions to the RRSP. They have to be reported so that:
a) CRA can properly calculate the amount of RRSP room that was used;
b) So that contribution can be deducted from your income in calculating your tax bill.
The bonus that was used to make the contribution was presumably reported to you as a taxable benefit on some T4 slip.
The fact the bonus was paid without deducting tax is immaterial. They did it for your convenience as it was going direct to RRSP. You are right that you won't "get money back", but if you don't report all your income, and report that some of it went into an RRSP, CRA is going to ask for money back. The fact that CRA has a contribution slip already doesn't mean they are going to do your taxes for you. (Don't I wish they would) They get contribution slips from financial institutions for RRSP contributions all the time. Those are just their cross-check on what you are filing.
If the employer had deducted taxes from your bonus, it would only be an estimate anyway. Just as making zero deduction is only an estimate of your final tax bill. You still have to file the final paper work.
PS. Are we talking about your 2018 or 2019 return? If your bonus was not paid until 2019, are you getting confused by an RRSP contribution made in the first 2 months of 2019, which can be declared for either 2018 or 2019 taxes?
So this t4 is for 2019? Box 52 just tells you how much room you have left for more rrsp contributions. Anyway at the end of the year they will send you a form listing your rrsp contributions for the year which you can deduct from your 2019 income. Sounds like they will send another t4 at the4 end of the year to list all your income for the year.
Don't delete it. Your overall income number on your T4 includes the amount of your bonus. Then you made an RRSP contribution with that bonus. These facts are true. The fact that the company did not deduct income tax from your bonus doesn't matter. The amount you earned, the amount you contributed to RRSP, and the amount you paid already in tax are all known from your T4 and your RRSP contribution slip. From these numbers, they'll calculate the difference which will end up being a refund to you, it sounds like. That's fine, and it's all above-board.
The fact that the PA matches it will just reduce your RRSP room for the future. When you get your NOA after you file, you will find out what your new RRSP room is.
Lets say bonus is 10K
10K bonus went to Group RRSP in first 60 days of 2019, and as I deferred by bonus to 2019, 10k is not in 2018- T4 total income. In T4 box 52 i see about same amount of my bonus. So assuming they input here ?
If your employer withheld taxes on the Group RRSP amount then skipping reporting the RRSP contribution/deduction means you won't get the refund you should be getting.
If your employer did not withhold taxes on this amount, skipping means you didn't pay enough withholding taxes resulting in less of a refund or a tax bill.
I didnt pay any tax for 10,000 bonus, it directly went to group RRSP in first 60 days of 2019. When I add this 10,000 in simpletax/turbotax I'm almost getting 5k additional refund. Where this 5k coming from ?
As 10K bonus is not in my total income of 2018 T4.
If my 2018 income is 100k, is it calculating tax on 100K-10K = 90K instead of 100K and refunding 5k refund from here ? Even though I deferred my bonus to next year and bonus is not in 2018 Total income , as I made my contribution in first 60 days CRA consider my 10K deduction for 2018 year tax calculation ?
... Should I delete this group RRSP while submitting ? As i didnt pay any tax for this X amount of group rrsp, im not supposed to get any return right ?
The group RRSP contribution may have gone in on a tax free basis as your employer is involved with the Group RRSP and your income. They are then able to provide the tax refund you would normally have wait for by skipping taking the withholding tax.
You still need to report the RRSP contribution and claim the deduction ... otherwise there will be too little withholding tax taken resulting in taxes owing.
The PA has to be from another source like a registered pension plan (RPP) or deferred profit sharing plan (DPSP). IOW, you are mixing up two different things.
The Group RRSP contribution is not included in the PA that is on the T4 slip.
You do need to report the contribution and claim the deduction.
If your employer withheld taxes on the Group RRSP amount then skipping reporting the RRSP contribution/deduction means you won't get the refund you should be getting.
If your employer did not withhold taxes on this amount, skipping means you didn't pay enough withholding taxes resulting in less of a refund or a tax bill.
Cheers
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