[curtiska]

Is software allowing you to use the full 3,500 deduction limit for past service contributions or is it also including the amount that you have contributed in the current year on Area C of the form.

Any help would be appreciated.

[Tim Parris]

curtiska, on 04 March 2010 - 06:12 PM, said:

Is software allowing you to use the full 3,500 deduction limit for past service contributions or is it also including the amount that you have contributed in the current year on Area C of the form.

Any help would be appreciated.

There are different rules depending on the type of past service contributions. Perhaps you could be more specific.

[curtiska]

Tim Parris, on 04 March 2010 - 10:15 PM, said:

There are different rules depending on the type of past service contributions. Perhaps you could be more specific.

Client received a T4 with Box 20 having an amount in it (ie, 5,300.00) and box 75 having an amount in it (ie, 1,300.00). The client also had an undeducted contribution from prior years carried forward from 2008 which appears on line 18 in Area C (ie, 2,000.00). In Area A it allows the difference between the 5,300 and 1,300 on line 9 (4,000.00). In Area B it allows the 1,300 on line 17, but when you get in area C it puts the 4,000 on line 22 and the 1,300 on line 23 to come up the the total shown in box 20 on the T4 slip and when you subtract this from the Annual deduction limit of 3,500 shown in box 21 in come up with a negative amount and will not allow you to claim the carry forward amount of 2,000.

Where the two past service amounts (2,000 + 1,300) do not add up to over the 3,500 annual deduction amount I would think it would let me use both of them on this year's return. Why is it taking into effect the current year's contribution of 4,000 in Area C when this area is for past service contribtuions.

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