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I am employed, therefore I am preparing my T1 for 2025.
I over-contributed about $4,000 to my RRSP in 2024. When I did my taxes back in April 2025, I noticed that and took those $4,000 out of my RRSP. At that time, I used T1 OVP to calculate tax on RRSP excess contributions (about $70). I also filled in RC2503 to request a waiver/cancellation of the tax. I submitted both forms to the CRA online.
Now for the tax year 2025, I received a T4RSP that has $4,000 in box 22 and $400 in box 30.
I was advised to file form T746 to claim back some taxes from 2025 because of that over-contribution. Going through T746, the calculations show $4,000 in line 13. I transferred that line to my T1 line 23200. Is that correct?
Do I need to enter the $4,000 as RRSP income on line 12900, 24640?
How do I handle this correctly? Thanks!
Hi Dennis,
Yes, generally you should report the T4RSP slip and then claim the offsetting deduction using Form T746, assuming the withdrawal relates to an RRSP over-contribution that was withdrawn in 2025.
The usual reporting is as follows:
1.Report the T4RSP income
The $4,000 shown in Box 22 of the T4RSP should generally be reported as RRSP income on line 12900 of your 2025 T1 return.
The $400 shown in Box 30 represents income tax withheld by the financial institution and should be claimed as tax deducted at source on your 2025 return.
2.Claim the T746 deduction
If the $4,000 withdrawal qualifies as a withdrawal of unused RRSP contributions, then Form T746 is used to calculate the deduction.
The amount from line 13 of Form T746 is transferred to line 23200 of your T1 return as an “other deduction.” Based on what you described, if line 13 of Form T746 is $4,000, then entering $4,000 on line 23200 appears to be correct.
3.Line 24640
Line 24640 is generally used for “qualified pension income” eligible for pension income splitting or the pension income amount. In most cases, a withdrawal of RRSP over-contributions reported on a T4RSP would not be entered on line 24640 unless your tax software specifically requires it based on the slip type and eligibility. For a regular RRSP withdrawal, the key income line is usually line 12900.
In simple terms, the $4,000 is reported as income on line 12900, and then the qualifying T746 deduction is claimed on line 23200, which should generally offset the taxable income from the withdrawal. The $400 withholding should be claimed as tax withheld, which may increase your refund or reduce your balance owing.
You should keep copies of the T1-OVP, RC2503, proof of the RRSP withdrawal, the T4RSP slip, and the Form T746 calculation in case CRA asks for support.
Please note that this is general guidance only. The exact treatment depends on whether the original contribution was deducted or remained unused, whether the withdrawal was made within the required time, and whether CRA accepts the waiver/cancellation request for the over-contribution tax.
Thank You,