Schedule A Excess TFSA Amounts

Transcription

1 Schedule xcess TS mounts If you have an excess Tax-ree Savings ccount (TS) amount at any time in the calendar year, use this schedule to determine the total excess TS amounts that are subject to the 1% tax on excess s. ttach a completed Schedule to orm R243, Tax-ree Savings ccount (TS) Return. xcess TS amount You (the individual) have an excess TS amount at any time in a calendar year as soon as the total of all s you made in the year (other than a qualifying transfer or an exempt contribution) exceeds your year plus any qualifying portion of a withdrawal made in the year up to that time. If, at any time in a month, you have an excess TS amount, you are subject to a 1% tax on your highest excess TS that month. If, at any time during the year, your TS contains contributions (other than a qualifying transfer or an exempt contribution) you have made while a non-resident of anada, you may also be subject to a separate 1% tax per month on these contributions ending when these contributions are withdrawn in full from the account and designated as a withdrawal of non-resident contributions or when you become a resident of anada, whichever is earlier. omplete orm R243-S-, Schedule Non-Resident ontributions to a Tax-ree Savings ccount (TS), to determine the amount of taxes you owe. If, at the time of death, the holder had an excess TS amount, the successor holder is deemed to have made, at the month following the date of the holder's death, a contribution to their TS equal to the amount, if any, by which the excess TS amount exceeds the total fair market value (MV), at the date of the holder's death, of all property under any arrangements that ceased to be a TS because of the holder's death. To the extent that the successor holder does not have sufficient room to absorb the deemed contribution, the successor holder will be subject to the 1% tax on excess TS contributions. ny income that is attributed to deliberate over-contributions will be subject to the tax on advantages. You can view your room by using the MyR mobile app at canada.ca/cra-mobile-apps or for a list of all contributions and made to your TS go to My ccount at canada.ca/my-cra-account. or more information on TSs, go to canada.ca/tfsa, see uide R4466, Tax-ree Savings ccount (TS), uide for Individuals or call To get our forms or publications, go to canada.ca/cra-forms or call efinitions eliberate over-contribution a contribution that an individual makes to a TS that results in, or increases, an excess TS amount, unless it is reasonable to conclude that the individual neither knew nor ought to have known that the contribution could result in liability for a penalty or a tax. Income that is reasonably attributable, directly or indirectly, to a deliberate over-contribution is an advantage subject to the special tax on advantages. xempt contribution a contribution made during the rollover period and designated as exempt by the survivor on prescribed orm R240, esignation of an xempt ontribution Tax-ree Savings ccount (TS) in connection with a payment received from the deceased holder's TS. older the individual who entered into the TS arrangement and, after the death of the holder, the individual's spouse or common-law partner, and a subsequent survivor, if designated as the successor holder of the TS. Qualifying transfer a direct transfer between a holder's TSs, or a direct transfer between a holder's TS and the TS of their current or former spouse or common-law partner if the transfer relates to payments under a decree, order, or judgment of a court, or under a written agreement relating to a division of property in settlement of rights arising from the breakdown of their relationship and they are living separate and apart at the time of the transfer. of a withdrawal that portion of a withdrawal from a TS (excluding a qualifying transfer or a specified distribution), made in the year, that was required to reduce or eliminate a previously determined excess amount. Rollover period the period that begins when the TS holder dies and ends at the end of the calendar year that follows the year of death. Specified distribution a distribution from a TS to the extent that it is, or is reasonably attributable to, an amount that is: an advantage; specified non-qualified investment income; income that is taxable in a TS trust; or income earned on excess contributions or non-resident contributions. specified distribution does not create or increase unused room in the following year, nor does it reduce or eliminate an excess TS amount. Successor holder in provinces or territories that permit a TS beneficiary designation, a successor holder is a spouse or common-law partner of the holder at the time of death, named by the deceased as the successor holder of the TS, who acquires all of the rights of the holder under the arrangement including the right to revoke any beneficiary designation. This spouse or common-law partner becomes the new account holder. Survivor an individual who is, immediately before the TS holder's death, a spouse or common-law partner of the holder. Note survivor may designate a successor holder (for example, a new spouse or common-law partner of the survivor in case of remarriage of the survivor). successor holder designation is effective only if it is recognized under applicable provincial or territorial law and the successor holder acquired all of the survivor's rights as holder, including the right to revoke any previous beneficiary designation made by the survivor in relation to the TS. room room is made up of: your TS dollar limit ($5,000 for years 2009 to 2012, $5,500 for years 2013 and 2014, $10,000 for year 2015 and $5,500 for year 2016 and 2017); any unused room from the preceding calendar year; and any made from the TS in the previous year, excluding qualifying transfers or specified distributions. or a more complete definition, see the section " room" in uide R4466, Tax-ree Savings ccount (TS), uide for Individuals. R243-S- (17) (e formulaire est disponible en français.)

2 Protected xample Kayla became a anadian resident in In the same year, she opened a TS and contributed her maximum of $10,000. In 2016, she makes the following contributions: $2,000 on January 12; $2,500 on January 20; $300 on January 26; and $1,500 on ebruary 13. On ebruary 18, Kayla realizes that she has an excess TS amount. That same day, she withdraws $1,000. On ebruary 23, she makes another contribution of $900. On March 5, she realizes that she has an excess TS amount and withdraws $400. Since Kayla has excess TS amounts in 2016, she must complete orm R243-S-, Schedule xcess TS mounts, and enter the total in Section 1 Part of orm R243, Tax-ree Savings ccount (TS) Return. The following example shows how Kayla would complete the schedule. Note that, assuming no further contributions are made in the year, the remaining excess TS amount of $500 from March will carry forward as the highest excess TS amount for pril, and an excess will continue to be carried forward until the entire amount is withdrawn. ontribution xcess TS ( ). If the of. olumn to the in olumn. lesser of ( ) and. xcess amounts in your TS. result of ( ). JNURY information from the beginning of the year. $5, $0.00 $ $2, $2, $5, $0.00 $0.00 $0.00 $ $2, $4, $5, $0.00 $0.00 $0.00 $ $ $4, $5, $0.00 $0.00 $0.00 $0.00 Line 1. highest olumn for the month of January on line 1 of Section 2. $0.00 RURY for January. $4, $5, $0.00 $0.00 $0.00 $ $1, $6, $5, $ $0.00 $0.00 $ $1, $6, $5, $ $0.00 $ $ $ $7, $5, $1, $ $0.00 $ Line 2. highest olumn for the month of ebruary on line 2 of Section 2. $ MR for ebruary. $7, $5, $1, $ $0.00 $ $ $7, $5, $1, $ $ $ Line 3. highest olumn for the month of March on line 3 of Section 2. $900.00

3 Protected Section 1 hart to calculate your excess TS amounts You must complete this chart to calculate the highest excess TS amount You must complete each month even if you don't have any transactions in that month. ttach a separate sheet if you need more space. Instructions 1. nter your year in olumn of the chart below. Report all amounts in anadian dollars. 2. List all your contributions from the first of the month to the end of the month in olumn. List all your from the first of the month to the end of the month in olumn. o not include qualifying transfers or exempt contributions and specified distributions. 3. If you made a contribution and a withdrawal on the same day, complete a separate the chronological order. 4. If, at the time of death, a TS holder had an excess TS amount and you are the successor holder of one of the accounts, you must enter, as a contribution, on the first day of the month following the holder's date of death, an amount by which the excess exceeds the MV, at the time of death, of the deceased's TS arrangements that ceased to be a TS upon the TS holder's death. 5. omplete all columns for each transaction. ontribution xcess TS ( ). If the of. olumn to the in olumn. lesser of ( ) and. xcess amounts in your TS. result of ( ). JNURY information from the beginning of the year. Line 1. highest olumn for the month of January on line 1 of Section 2. RURY for January. Line 2. highest olumn for the month of ebruary on line 2 of Section 2.

4 Protected ontribution xcess TS ( ). If the of. olumn to the in olumn. lesser of ( ) and. xcess amounts in your TS. result of ( ). MR for ebruary. Line 3. highest olumn for the month of March on line 3 of Section 2. PRIL for March. Line 4. highest olumn for the month of pril on line 4 of Section 2. MY for pril. Line 5. highest olumn for the month of May on line 5 of Section 2.

5 Protected ontribution xcess TS ( ). If the of. olumn to the in olumn. lesser of ( ) and. xcess amounts in your TS. result of ( ). JUN for May. Line 6. highest olumn for the month of June on line 6 of Section 2. JULY for June. Line 7. highest olumn for the month of July on line 7 of Section 2. UUST for July. Line 8. highest olumn for the month of ugust on line 8 of Section 2.

6 Protected ontribution xcess TS ( ). If the of. olumn to the in olumn. lesser of ( ) and. xcess amounts in your TS. result of ( ). SPTMR for ugust. Line 9. highest olumn for the month of September on line 9 of Section 2. OTOR for September. Line 10. highest olumn for the month of October on line 10 of Section 2. NOVMR for October. Line 11. highest olumn for the month of November on line 11 of Section 2.

7 Protected ontribution xcess TS ( ). If the of. olumn to the in olumn. lesser of ( ) and. xcess amounts in your TS. result of ( ). MR for November. Line 12. highest olumn for the month of ecember on line 12 of Section 2. Section 2 alculation of excess TS amounts highest excess TS amount for each month from column of the corresponding month below. Line 1. olumn for the month of January from line 1 of Section 1... Line 2. olumn for the month of ebruary from line 2 of Section 1... Line 3. olumn for the month of March from line 3 of Section 1... Line 4. olumn for the month of pril from line 4 of Section 1... Line 5. olumn for the month of May from line 5 of Section 1... Line 6. olumn for the month of June from line 6 of Section 1... Line 7. olumn for the month of July from line 7 of Section 1... Line 8. olumn for the month of ugust from line 8 of Section 1... Line 9. olumn for the month of September from line 9 of Section 1... Line 10. olumn for the month of October from line 10 of Section 1... Line 11. olumn for the month of November from line 11 of Section 1... Line 12. olumn for the month of ecember from line 12 of Section 1... dd lines 1 through 12 (this is the total of the excess TS amounts)... = nter this amount on Line 1 of Section 1 Part of orm R243, Tax-ree Savings ccount (TS) Return. Personal information is collected under the Income Tax ct to administer tax, benefits, and related programs. It may also be used for any purpose related to the administration or enforcement of the ct such as audit, compliance and the payment of debts owed to the rown. It may be shared or verified with other federal, provincial/territorial government institutions to the extent authorized by law. ailure to provide this information may result in interest payable, penalties or other actions. Under the Privacy ct, individuals have the right to access their personal information and request correction if there are errors or omissions. Refer to Info Source at canada.ca/cra-info-source, Personal Information ank R PPU 054.