RC383: Tax-exempt Earned Income and Contributions for a Pooled Registered Pension Plan

If you are an Indian (as defined by the Indian Act) and you contributed to a pooled registered pension plan (PRPP) with tax-exempt income during the year, you’ll need to report your contributions on the RC383 form. This helps the Canada Revenue Agency (CRA) track your contributions and calculate your non-deductible PRPP contribution limit on your tax-exempt income for the next tax year.

Note: Your eligible PRPP contributions can include contributions you made as an employee and/or as a self-employed individual.

The contributions you make to a PRPP with tax-exempt income aren’t deductible for income tax purposes, but they can be used as repayment under the Home Buyers Plan (HBP) or the Lifelong Learning Plan (LLP).

What is tax-exempt income and where can I find this amount?

Your tax-exempt income is income you earned from the following sources: 

  • Employment income on a reserve (this includes employment-related income such as employment insurance benefits, Canada Pension Plan/Québec Pension Plan payments, registered pension plan benefits, etc.)
  • Self-employment income from a business on a reserve
  • Rental income from a reserve property
  • Farming or fishing income that is connected to a reserve
  • Research grants
  • Interest and investment income that is situated on a reserve

You can find your gross tax-exempt income from employment in box 71 of your T4 slip, and your tax-exempt self-employment income in box 88 of your T4 slip. If you didn’t receive a T4 slip, you’ll have to calculate your gross tax-exempt income (from your business, rental, farming, fishing, or investments), before any deductions,  based on other slips you receive.

Where do I claim this?

Follow these steps in H&R Block’s 2018 tax software:

  1. On the PREPARE tab, click the IN THIS SECTION icon.

  2. In the Pension and retirement plans box, click the Add This Topic button.

  3. Click the PENSION PLANS AND INVESTMENTS icon. You’ll find yourself here:

    DIY18_PENSION_EN.png

  4. Under the PRPP and RPP heading, select the checkbox labelled Tax-exempt earned income and contributions for a pooled registered pension plan (RC383), then click Continue.

  5. When you arrive at the page for the Tax-exempt earned income and contributions for a pooled registered pension plan, enter your information into the tax software.
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