Past Service Contributions and my T4 Slip!!???

[GnrJetTech]

Hey all, brand new to the forums here...site looks good!

Anyways, I was in the reserves for 10yrs, and now in the regs for 6 with broken service so I am doing a pension buyback.

To the point...I have 'past service' anotated on my t4 of $1200.00 which is correct for the $100/mo. I buyback each month.

Where the heck do you claim that on your taxes? I thought it might have been line 244 but I don't think that is correct.

Anyone have any solid ideas?

Thanks a truck load.
GnrJetTech

 

[Michael OLeary]

What number block on the T4 is it in? That may help someone answer your question.

 

[GnrJetTech]

That's the big mystery...it is listed beside the 'other information' section at the bottom of the t4 with no block assined to it.

weird.

 

[exgunnertdo]

I think that all it means is that it comes off your past RRSP eligibility amount.  Eligible RRSP amounts are based on total income, then if you contribute to a registered pension, you get less RRSP room.  You're buying back pensionable time from the past, so they are going to adjust your past RRSP amount too.  When you get your RRSP amount for next year, which is based on the taxes you're working on now, that $1200 will be taken into account.

If you have your Dec 31 pay statement - double check the total pension amount on that for the year, against the registered pension contributions on the T4.  They should be the same.  I believe the $1200 is only going to be used for the RRSP eligibility calculation.

I'm in the same boat, but I can't remember where I put the numbers and don't have my tax stuff handy, so I can't double check.  But I think that's right.

 

[MamaBear]

On the T4 where it says "Other Information" (see the back) is there not a Box Number indicated right next to it?  It would be before the amount.  The box number indicated would give you an idea of whether or not you need to claim it and where.  Once you know the box number it refers to then you flip over the T4 and find out where to report it.
If the box says 52 then it's a Pension Adjustment and you simply enter the amount on line 206.

That's about all I can tell from my hubby's T4.  Hope it helps you.

 

[PMedMoe]

I get that as well, as I am paying back previous time.  It's not claimed anywhere on your income tax.  I believe there may be a spot to put it but it doesn't calculate into the return itself.

 

[GnrJetTech]

Thanks for all the info. I talked to the sisip tax guy today and he says if there is no box# associated with a numerical value, 
it is merely information for the employee and is probably already added into the contributions calculation.

That's good enough for me!

Thanks again.

 

[CountDC]

The SISIP guy is right - it is just there as info.  It is already added into the overall pension block.