# My Mother



## Money4life (May 17, 2012)

Hello,

My mother's financial situation is a bit long and complicated (will go into more detail later) but she's finally allowing me to look into her financial history and give her some suggestions.

According to her notice of assessment for tax year 2011, she still has $23,391 of non-capital losses from previous years that are unused. She has an RRSP deduction limit of $19,109 for 2012. Clearly, this $23,391 will get claimed when she files taxes this year. This should provide her some tax relief so my question is: Can she contribute $19,109 to an RRSP for tax year 2012 but *not *deduct the full amount until tax year 2013? I'm thinking no because isn't the most that you can carry over without penalty $2000? 

Should she wait to contribute into an RRSP next month or is she still good to do this right now?

I am visiting a banker in an hour with my mother (and I wont be in town for much longer) so any help given in such short notice would be extremely helpful.

Thank you so much.


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## MoneyGal (Apr 24, 2009)

Short answer to your question is yes. Also, any contributions made in the first 60 days of a calendar year are claimable either for the preceding or the current calendar year, so if she makes a contribution of $19,109 today, you have until she files her tax return to decide for which year (if either) the contribution will be claimed.


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## Money4life (May 17, 2012)

MoneyGal said:


> Short answer to your question is yes. Also, any contributions made in the first 60 days of a calendar year are claimable either for the preceding or the current calendar year, so if she makes a contribution of $19,109 today, you have until she files her tax return to decide for which year (if either) the contribution will be claimed.


Right! Thanks for the short answer. Haha.

My mother's finances were extremely disorganized and it took me forever to even find a recent notice of assessment.

Thanks again!


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## none (Jan 15, 2013)

If you have her attention with her finances get her set up with this:
http://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/menu-eng.html

lets you track deductions and look at past return summaries.

Keep in mind that depending on her income a RRSP may not even be worth while (<42K) and instead a TFSA could be a food choice.


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## Money4life (May 17, 2012)

none said:


> If you have her attention with her finances get her set up with this:
> http://www.cra-arc.gc.ca/esrvc-srvce/tx/psssrvcs/menu-eng.html
> 
> lets you track deductions and look at past return summaries.
> ...


Appreciate the comments.

I do think it would be a great idea to get her set up online with CRA but knowing her, she won't do it unless I'm actually right beside her.

Her employment income for 2012 was around $40,000 on the dot but she had enough money to max out both of her RRSP and TFSA contribution room. Previously, she has about $5,100 in a TFSA with TD at 1.05% interest and another $15,300 with FirstOntario Credit Union at 2% interest. It took me months to convince her but she finally transferred that $5,100 over to the Credit Union and she made a new $5.500 contribution for this year. As for her RRSP, she contributed the full $19,109 to an account with 2.15% interest. She is a widow turning 60 this year so I don't want her to be anything risky with her money. 

So when she files her taxes this year, does she need to fill out a schedule 7 form to tell that the contributions were made but not getting deducted...or does she not need to mention it at all since this is still the first 60 days so technically it will not be used until tax year 2013?


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## kcowan (Jul 1, 2010)

She can claim part of the contribution in 2012 and the rest in 2013 as well and decide how much when doing the taxes. The contribution can be carried forward beyond 2013 so it is possible that the one contribution can be partially used in 3 or more tax years.


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## Guban (Jul 5, 2011)

Money4life said:


> Appreciate the comments.
> 
> So when she files her taxes this year, does she need to fill out a schedule 7 form to tell that the contributions were made but not getting deducted...or does she not need to mention it at all since this is still the first 60 days so technically it will not be used until tax year 2013?


She needs to fill out schedule 7 and tell them on line 7 that she made the contribution. If she tried to fill this out next year (for taxation 2013), there is no place to indicate that she made a contribution between Jan-Feb 2013.


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