RRSP Contributions and HBP or LLP repayments

The RRSP contributions and HBP or LLP repayments (Schedule 7) page is used to report your contributions to a registered retirement savings plan (RRSP). Your RRSP contributions impact your taxes in two ways:

  • they reduce your tax payable (when you claim the RRSP deduction on your return)
  • the income you earn in the RRSP is tax-exempt as long as the money remains in the plan

Example, if your RRSP contribution limit for the year is $10,000 and you put the full amount in your RRSP, you can subtract the $10,000 from your income when you file your taxes. This means you don’t have to pay tax on your contribution amount. Additionally, unlike with regular investments, your RRSP contributions are tax sheltered, meaning it grows tax-free. However, you will have to pay tax on the money you withdraw from an RRSP (usually once you retire).

You’ll also need to complete this page if any of the following situations applied to you in 2021:

  • You withdrew money from your RRSP for the Home Buyer’s Plan (HBP) to pay for your new home or are repaying the RRSP funds you withdrew under the HBP
  • You withdrew money from your RRSP or the Lifelong Learning Plan (LLP) to pay for education or training for yourself or your spouse or are repaying RRSP funds you withdrew under the LLP
  • You aren’t deducting all your unused RRSP/PRPP contributions on your return (i.e. amount (B) on your latest notice of assessment or reassessment)
  • You aren’t deducting all the RRSP/PRPP contributions you made from March 2, 2021 to March 1, 2022 on your return
  • You’re applying your RRSP/PRPP contributions as a current year repayment under the HBP or LLP
  • You’ve transferred certain amounts you included in your income to your RRSP/PRPP or
  • You’ll be the beneficiary of income contributed to an amateur athlete trust in the year and you want that income to be used in calculating your RRSP/PRPP contribution limit