Contributing to a Registered Retirement Savings Plan (RRSP) is one of the most popular tax-saving strategies for Canadians. But understanding how to properly report RRSP contributions and withdrawals on your tax return is essential to avoid errors, penalties, or missed deductions. This guide explains exactly how to handle RRSP transactions on your 2025 Canadian tax return.
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📌 What Is an RRSP?
An RRSP is a registered account that allows Canadians to defer tax on income and investment growth until withdrawal. Contributions reduce your taxable income in the year made, while withdrawals are taxed in the year received.
🧾 How to Report RRSP Contributions
RRSP contributions made in the first 60 days of 2026 can be applied to the 2025 tax return. You’ll receive a CRA-issued RRSP contribution receipt that outlines the amount and date of deposit.
- Report contributions on line 20800 of your T1 General return.
- Include only the amount you are claiming in 2025. Carry forward the rest.
- Review your Notice of Assessment (NOA) to verify your contribution room.
Key Tip: Overcontributions above your limit by $2,000 or more can lead to penalties of 1% per month.
📤 How to Report RRSP Withdrawals
Withdrawals from an RRSP are fully taxable in the year you take the money out unless part of the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP).
- You will receive a T4RSP slip from your financial institution.
- Enter withdrawal amount on line 12900 of your return.
- Tax withheld at source (shown on slip) should be entered on line 43700.
RRSP Tax Withholding Rates:
- $0 – $5,000: 10%
- $5,001 – $15,000: 20%
- Over $15,000: 30%
Note: Withholding tax may be insufficient for large withdrawals. Additional tax may be owed when filing.
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🏡 Home Buyers’ Plan (HBP) Withdrawals
If you withdrew funds under the HBP to buy a home:
- You don’t report the amount as income
- You must repay the HBP over 15 years
- Use Schedule 7 to report repayment or declare as income
🎓 Lifelong Learning Plan (LLP) Withdrawals
Similar to the HBP, withdrawals under LLP aren’t taxed immediately:
- You must repay the amount over 10 years
- Report repayments or additions to income using Schedule 7
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📅 Important Dates for 2025 Filing
- RRSP Deadline: March 1, 2026 (for 2025 return)
- Tax Filing Deadline: April 30, 2026
- Self-employed Deadline: June 15, 2026
🧠 Final Tips
- Check your CRA My Account for contribution room
- Use certified tax software with NETFILE support
- Keep all RRSP receipts and T4RSP slips
- Consult a tax advisor for advanced planning strategies
Disclaimer: This blog is for educational purposes only and is not intended as personal tax advice. Please consult a certified tax professional for individualized guidance.
