Examples – When and how to make a repayment
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Examples – When and how to make a repayment
Example 1
Sarah makes LLP withdrawals from 2017 to 2020. She continues her education from 2017 to 2022, and is a qualifying student up to tax year 2020. Sarah's repayment period begins in 2022, since 2022 is the fifth year after the year of her first LLP withdrawal. The due date for her first repayment is March 1, 2023, which is 60 days after the end of 2022, her first repayment year.
Example 2
Joseph makes an LLP withdrawal in 2019 for a qualifying educational program he is enrolled in during the same year. He is a full-time student for five months of 2019. Joseph completes the educational program in 2020, and he is a full-time student for five months in 2020. He is not considered a qualifying student for 2021 or 2022. Joseph's repayment period begins in 2022.
Example 3
Betty has an LLP balance of $7,500. Her repayment period is from 2020 to 2029. For her first repayment year, she needs to repay $750, which is 1/10 of the amount she withdrew. Betty contributes $6,000 to her RRSPs in 2020. To designate $750 as her 2020 repayment, she has to file Schedule 7, RRSP, PRPP and SPP Unused Contributions, Transfers, and HBP or LLP Activities with her 2020 Income Tax and Benefit Return. Betty can deduct the remaining $5,250 she contributed if the RRSP deduction limit shown on her notice of assessment for 2020 is at least $5,250.
- Date modified:
- 2021-01-28