How to File Schedule 7 for RRSP Contributions

What Is Schedule 7?

Schedule 7, officially titled "RRSP, PRPP and SPP Unused Contributions, Transfers, and HBP or LLP Activities," is a supplementary form that accompanies your T1 General Income Tax and Benefit Return. It is published by the Canada Revenue Agency (CRA) and is used to report contributions you made to your Registered Retirement Savings Plan (RRSP), your spouse's or common-law partner's RRSP, a pooled registered pension plan (PRPP), or a specified pension plan (SPP).

The form also handles transfers from registered pension plans, the Home Buyers' Plan (HBP), and the Lifelong Learning Plan (LLP). Even if you are not claiming an RRSP deduction in the current tax year, you may still need to file Schedule 7 to report contributions and preserve your ability to claim them in the future.

Who Needs to File Schedule 7?

You should file Schedule 7 if any of the following apply:

• You made contributions to your own RRSP or your spouse's RRSP during the tax year or the first 60 days of the following year
• You want to claim an RRSP deduction on your tax return
• You have unused RRSP contributions from prior years that you want to carry forward or deduct this year
• You transferred amounts to your RRSP, such as a retiring allowance or lump-sum pension payment
• You participated in the HBP or LLP and need to report repayments
• You contributed to a PRPP or SPP

Understanding Your RRSP Deduction Limit

Before filling out Schedule 7, you need to know your RRSP deduction limit. This is the maximum you can deduct for RRSP contributions on your tax return for the current year. The CRA calculates it and shows it on your most recent Notice of Assessment. You can also find it by logging into My Account on the CRA website.

Your deduction limit is generally calculated as:

• 18% of your previous year's earned income, up to the annual maximum dollar limit (for example, the 2025 limit is $32,490)
• Plus any unused contribution room carried forward from previous years
• Minus any pension adjustment (PA) from an employer's registered pension plan
• Plus any pension adjustment reversal (PAR) if you left a pension plan

Do not over-contribute to your RRSP. You are allowed a lifetime over-contribution cushion of $2,000, but contributions exceeding your deduction limit plus this cushion are subject to a 1% per month penalty tax, reported on Form T1-OVP.

Step-by-Step Guide to Completing Schedule 7

Part A: Contributions

Report all RRSP contributions made during the applicable period:

• Line 1: Unused RRSP contributions from prior years. This should match the CRA's records from your previous assessment. Verify it on your Notice of Assessment or through My Account.
• Line 2: RRSP contributions made during the tax year (March through December 31).
• Line 3: RRSP contributions made in the first 60 days of the year following the tax year (January 1 through the end of February or March 1). These can be deducted on either the current year's return or the following year's return.
• Line 4: Total of lines 1 through 3. This is your total available RRSP contributions.

Use the contribution receipts from your financial institution. They issue separate receipts for contributions made during the calendar year and for contributions made in the first 60 days of the following year.

Part B: RRSP Deduction

Determine how much of your total contributions to claim as a deduction this year:

• Line 5: Your RRSP deduction limit for the current year (from your Notice of Assessment or CRA My Account).
• Line 6: The amount you are claiming as your deduction. This cannot exceed the lesser of your total contributions (line 4) and your deduction limit (line 5).

You are not required to deduct all contributions in the year you make them. If you expect to be in a higher tax bracket in a future year, it may be advantageous to carry forward your contributions and claim them later when the deduction provides a larger tax benefit.

Part C: Transfers

If you transferred amounts to your RRSP from a registered pension plan, a retiring allowance, or certain other eligible sources, report them here. These transfers generally do not reduce your regular RRSP contribution room.

Part D: Home Buyers' Plan (HBP)

The HBP allows you to withdraw up to $60,000 from your RRSP to buy or build a qualifying home. You must repay the withdrawn amount over 15 years, starting the second year after the year of withdrawal. Report your required annual repayment in this section. If you do not make the required repayment, the shortfall is included in your income for that year. For more about home buying programs, see our guide to first-time home buyer programs in Canada.

Part E: Lifelong Learning Plan (LLP)

The LLP allows you to withdraw from your RRSP to fund full-time education. The maximum is $10,000 per year, up to $20,000 total. Repayments are spread over 10 years. Report your annual repayment here. If you miss a repayment, the shortfall is added to your income.

Spousal RRSP Contributions

If you contributed to your spouse's or common-law partner's RRSP, report the contribution on your Schedule 7, not theirs. The deduction is claimed on your return, reducing your taxable income. The funds belong to your spouse's plan. This is a useful income-splitting strategy: the funds will be taxed in your spouse's hands when withdrawn, potentially at a lower rate.

Be aware of the attribution rules. If your spouse withdraws from a spousal RRSP within three calendar years of your most recent contribution, the withdrawn amount may be attributed back to you and included in your income instead.

Using Tax Software

If you use tax preparation software such as Wealthsimple Tax, TurboTax, or H&R Block, the software guides you through Schedule 7 automatically when you enter your RRSP contribution receipts. It calculates your deduction and fills in the schedule. Even so, understanding what the numbers mean helps you verify the results and make informed decisions about whether to claim or carry forward.

If you file on paper, download Schedule 7 from the CRA tax forms page.

Common Mistakes to Avoid

• Not filing Schedule 7 when you made contributions, even if you do not want to claim a deduction this year. Failing to report contributions can cause confusion in future years.
• Over-contributing beyond your deduction limit plus the $2,000 cushion
• Claiming contributions made in the first 60 days of the following year on the wrong tax return
• Not tracking unused contribution room from year to year
• Forgetting to report HBP or LLP repayments, which results in the shortfall being added to your income
• Confusing contribution room with deduction room after pension adjustments

RRSP Tips for Newcomers

If you are new to Canada, your RRSP contribution room builds over time based on your earned income in Canada. In your first year, you may have little or no room. However, unused room carries forward indefinitely, so as your income grows, your available space increases. For more about financial planning as a newcomer, explore our guide to opening a bank account and our guide to filing your first tax return in Canada.

Related Guides

• Guide to T778: Child Care Expenses Deduction
• How to Fill Out T776 for Rental Income
• How to File Your First Tax Return in Canada
• Understanding the Canadian Tax System for Newcomers
• Applying for the GST/HST Credit

Schedule 7 is an essential part of maximizing your RRSP benefits and ensuring your tax return is accurate. By understanding each section, keeping careful records of your contributions and deduction limits, and staying on top of any HBP or LLP repayments, you can make the most of this powerful retirement savings tool.