If you've reported RRSP contributions but your RRSP deduction is showing as $0, check these potential reasons:
- Contributions being carried forward
- Missing RRSP deduction limit
- Repayments to Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP)
- Incorrect birth date entry
Contributions being carried forward
This often happens if you entered contributions before income or have low taxable income. To check:
- Go to the Review & Optimize section and click the Review & Optimize button to rerun the optimizer
- Go to the Optimizations section and expand the Credits & Deductions table
- If the RRSP deduction amount is $0, it means there's likely no tax benefit this year
- Expand the Unused Amounts Available to Carry Forward table for the carry-forward amount
Missing RRSP deduction limit
- If not entered, Wealthsimple Tax assumes it's $0
- Enter your correct deduction limit from your latest Notice of Assessment
HBP or LLP repayments
- Check if you've designated repayments to these programs
- These may have used up all your contributions
Incorrect birth date
- Verify your birth date is entered correctly
- If you appear to be over 71, you can't deduct RRSP contributions
If you would rather deduct your contributions this year, you can override the optimization.
Remember: Carrying forward RRSP contributions can sometimes be more beneficial. Consider your current and future tax situations when deciding.
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