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Overview
You don't have to claim your full FHSA deduction in the year you make your contributions. Any eligible amount you don't claim can be carried forward and deducted in a future year.
For example, if you contributed $8,000 to your FHSA, you could claim $2,000 this year and carry forward the remaining $6,000. Carrying forward a deduction may be useful if you expect your income or tax rate to be higher in a future year.
Before you start, make sure you've reported your FHSA contributions in Wealthsimple Tax. To learn how, see Report FHSA activities on your tax return.
Choose how much of your FHSA deduction to claim
To change the amount of your FHSA deduction that you claim this year:
- Navigate to the Summary > Optimizations section in your tax profile
- Find the FHSA deduction in the Credits and deductions table
- Under This year, enter the amount you want to claim, or enter $0 to carry forward your entire FHSA deduction
- Select Lock amounts
- Select Review & Optimize to apply the change
Locking the amount keeps the optimizer from changing it. To learn more, see Lock optimization results in your tax profile.
After you make your changes, check the Unused amounts available to carry forward table to see how much of your FHSA deduction is available for a future year.
Understand the difference between unused contributions and participation room
- Unused FHSA contributions: Amounts you've already contributed to an FHSA but haven't claimed as a deduction. You may be able to claim them in a future tax year.
- Unused FHSA participation room: The amount you can still contribute to your FHSAs. To learn more, see FHSA participation room on the CRA website.
Frequently asked questions
Why is Wealthsimple Tax limiting my FHSA deduction to $8,000?
Your available FHSA deduction can be more than $8,000 if you have unused contributions from previous years. If Wealthsimple Tax is limiting your deduction to $8,000, check your FHSA information:
- Enter the amounts from your FHSA participation room statement in the first part of the FHSA Contributions & Income section
- Enter all of your T4FHSA slips for the tax year
- Check that any unused contributions from previous years appear on your FHSA participation room statement
If you believe a contribution from a previous year is missing, check the FHSA information in your CRA My Account and the return you filed for that year. If the contribution wasn't reported correctly, you may need to change that return.
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