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Contribution limit showing as $0
January 30, 2021
11:11 pm
russel5
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I have a question.
I came to Canada in 2016.

I never invested in TFSA till last year , when I invested 28 000 $. My contribution limit I calculated was 28 500 $.

Now yesterday, when I checked into my CRA account, it says my contribution limit for 2021 is 0 $.
They also mentioned that they are still receiving reports from financial institutions.

My question is how can my limit show to be 0 $, what is the problem ?

January 31, 2021
9:55 am
hwyc
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I think from 2021 to 2017, the accumulative limit is already $29,000. Have you already drill down to the year by year calculations on the CRA account ? Last but not least, I realized if it is not a purple click-able link on the detail calculations, it means *no* data has been submitted by any FI(s) yet.

January 31, 2021
10:09 am
Bill
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Seems odd, seems to me your limit should be $6500. Were you a Canadian resident (i.e. filed a Canadian tax return) and aged at least 18 with a SIN in 2016?

Does it show all or part of the $28K contributions from last year?

January 31, 2021
12:18 pm
russel5
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Bill said
Seems odd, seems to me your limit should be $6500. Were you a Canadian resident (i.e. filed a Canadian tax return) and aged at least 18 with a SIN in 2016?

Does it show all or part of the $28K contributions from last year?  

I immigrated to Canada in the year 2016 , and I had SIN in 2016

January 31, 2021
12:55 pm
russel5
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hwyc said
I think from 2021 to 2017, the accumulative limit is already $29,000. Have you already drill down to the year by year calculations on the CRA account ? Last but not least, I realized if it is not a purple click-able link on the detail calculations, it means *no* data has been submitted by any FI(s) yet.  

This is what was written

The calculation of your TFSA contribution room for a year is based on information provided to us by your financial institution(s) about transactions you made before that year. If we receive or process additional information, your TFSA contribution room could change.

As the CRA is currently receiving information from financial institutions, we are unable to calculate your TFSA contribution room for 2021 at this time.

January 31, 2021
1:14 pm
Norman1
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TFSA issuers have until March 1 this year to upload their 2020 TFSA information to CRA. Consequently, any 2021 TFSA contribution room amount given out by CRA right now is meaningless.

No way one can calculate remaining TFSA contribution room for this year without the amounts of any contributions and withdrawals during 2020.

January 31, 2021
1:52 pm
Bill
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It's a good question, despite the time lags you would think by now they would at least show your limit as of Jan 1/20. It's likely that your 2020 activity is not there yet, but they have your activity to the end of 2019, i.e. zero, and they know you became eligible in 2016, assuming you filed tax returns showing your age and SIN. I suppose it's possible they show zero for everyone who as far as they know has never even opened a TFSA account, but that doesn't make much sense either. And there's some info on the internet saying this data appears on your Notice of Assessment but I've never seen that.

Anyway, you have some options to find out why, as per the Jan 25/21 TFSA Guide (link below):

"Where can I find my TFSA contribution room information?
Your TFSA contribution room information can be found by using one of the following services:
My Account for Individuals.
MyCRA at Mobile apps – Canada Revenue Agency.
Represent a Client if you have an authorized representative.
Tax Information Phone Service (TIPS) at 1-800-267-6999.
In addition, if you want to receive a TFSA Room Statement, call us. You can also ask for a TFSA Transaction Summary that shows the information that we received from your TFSA issuer(s) about your contributions and withdrawals.

If the information that we have about your TFSA transactions is not complete or if you have made contributions to your TFSA this year, use Form RC343, Worksheet – TFSA contribution room, to calculate your TFSA contribution room for the current year. If we have deemed your unused TFSA contribution room to be a specific amount, do not use this form; call us for more information.

You must keep records about your TFSA transactions to make sure that your contributions do not go over your TFSA contribution room. We will keep track of an individual's contribution room and determine the available TFSA contribution room for each eligible individual based on information provided annually by the TFSA issuers."

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html#P44_1115

January 31, 2021
3:07 pm
hwyc
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russel5 said

Now yesterday, when I checked into my CRA account, it says my contribution limit for 2021 is 0 $.

My question is how can my limit show to be 0 $, what is the problem ?  

Yes, it is strange to be $0 for 2021. Everybody I know & myself already got the new $6,000 room for 2021 bestowed.

A year's contribution limit calculation should be the sum of 3 components.
(1) Unused room carryover from previous year.
(2) Total withdrawal amount from previous year.
(3) New room for the year as announced.

January 31, 2021
8:38 pm
Norman1
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Perhaps CRA doesn't believe russel5 is a resident of Canada for tax purposes and has not been crediting TFSA contribution room.

No TFSA contribution room is bestowed while taxpayer is not a resident, regardless of having Canadian citizenship or landed immigrant status.

January 31, 2021
10:40 pm
russel5
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The site also shows

Your 2020 RRSP deduction limit is $18,586.00

I guess they have not updated so far.

January 31, 2021
10:41 pm
Vatox
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My guess is that your contribution room is $0 because you just opened the TFSA last year and the CRA can’t grant you TFSA room until your first TFSA account is registered with them. They don’t have your $28,000 contribution on record yet. Yes your contribution increases each year after age 18 as a Canadian resident, but they don’t know you have a TFSA.
It would be interesting to know what is shown on tax returns for someone that definitely has TFSA contribution room and has never opened a TFSA before.

January 31, 2021
10:54 pm
Vatox
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I’m curious as to whether you should also get the $5500 from 2016 as well. That would total $34,500

February 1, 2021
5:03 am
Bill
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I asked OP about tax filing & residency status in #3 above, i.e. was he a resident for tax purposes beginning in 2016? An answer to that might help.

February 1, 2021
7:27 am
hwyc
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russel5 said
The site also shows

Your 2020 RRSP deduction limit is $18,586.00

I guess they have not updated so far.  

No. There will be no 2021 RRSP deduction limit until you file for 2020 tax.
If you filed for 2019 tax, then your 2020 RRSP deduction limit will be up-to-date.
Are you saying the $18,586 amount you see on CRA is not the amount you expected ?

Regarding your TFSA numbers, you should call CRA to inquire about missing 2021 $6,000 contribution limit. It can be a sign of some underlying issues.

February 1, 2021
9:37 am
Vatox
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Bill said
I asked OP about tax filing & residency status in #3 above, i.e. was he a resident for tax purposes beginning in 2016? An answer to that might help.  

Yes we need more details from russel5.

I did read that a non-resident can still build contribution room, but isn’t allowed to make the contributions.

February 1, 2021
10:05 am
Bill
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You need to be a Cdn resident at some point in a year to get that year's contribution room.

If you make a contribution while you're a non-resident there's a 1% per month tax on that full contribution amount as long as any part of it is in the the account and you're a non-resident.

Citizenship is an irrelevant factor.

February 1, 2021
12:53 pm
mustang
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When I check my CRA MY ACCOUNT, it shows TFSA room of 12K
Which doesn't account for the 6K contribution for 2020, and another 6K for 2021
(I had used up all other room previously)
So, it's clearly just a question of when do they do their updating?
I was thinking that the bank would notify CRA more or less immediately after I made a contribution
Can't be, of course
Sounds like it is the same as other info slips-- just needs to be issued (ie., sent to CRA) before March 1?

February 1, 2021
1:47 pm
Vatox
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mustang said
When I check my CRA MY ACCOUNT, it shows TFSA room of 12K
Which doesn't account for the 6K contribution for 2020, and another 6K for 2021
(I had used up all other room previously)
So, it's clearly just a question of when do they do their updating?
I was thinking that the bank would notify CRA more or less immediately after I made a contribution
Can't be, of course
Sounds like it is the same as other info slips-- just needs to be issued (ie., sent to CRA) before March 1?  

Totally right! I never follow the CRA data. I simply log all of my contributions and withdrawals in a spread sheet. I make my contributions in January accordingly, regardless of CRA numbers, and I’ve never been punished with that 1% penalty. So keep your own records and don’t worry.

February 1, 2021
2:12 pm
Vatox
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Bill said
You need to be a Cdn resident at some point in a year to get that year's contribution room.

If you make a contribution while you're a non-resident there's a 1% per month tax on that full contribution amount as long as any part of it is in the the account and you're a non-resident.

Citizenship is an irrelevant factor.  

Yes, I was just reading up on this. If OP is a non-resident and always has been, that $28000 is subject to the 1% penalty each month that it’s been in the TFSA. It’s interesting that non-residents are allowed to open a TFSA but can’t contribute while being non-resident. I wouldn’t have allow non-residents to open a TFSA in the first place. If OP was a resident before and acquired contribution room, then he better make sure to only contribute what was allotted for those years.

February 1, 2021
3:42 pm
Loonie
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OP does say clearly, #1 above, that s/he "came to Canada in 2016".
If s/he was not 18 at that time or did not remain a resident or the government somehow doesn't believe they are still a resident (e.g. didn't file taxes?), there could be a problem with TFSA room.

I suspect the most likely thing is that this person didn't exist from the point of view of TFSA contribution tracking until they made one. The process for onboarding new SINs from new residents could be slow unless triggered by a contribution.

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