TFSA return and payment of taxes
Most TFSA holders have no tax payable related to their TFSA investments, and no TFSA tax return has to be filed. However, when TFSA taxes are applicable for a year, an RC243, Tax-Free Savings Account (TFSA) Return, must be filed by June 30 of the following year. Any tax owing must also be paid by that date. For payment remittance options, see Make a payment.
The RC243-SCH-A, Schedule A - Excess TFSA Amounts and RC243-SCH-B , Schedule B - Non-Resident Contributions to a Tax-Free Savings Account (TFSA) will assist you in determining your tax liability.
If a TFSA Return is required but has not been filed, the CRA may use information provided by your issuers in order to calculate any tax payable by you.
Proposed TFSA return explained
Annually, the CRA sends out a letter and a proposed TFSA return to Canadians who may have over contributed to their TFSA. You may also receive a proposed TFSA return if you made contributions to your TFSA while you were not a resident of Canada. If you receive a letter, it does not automatically mean that you will be subject to a tax. It may just mean that more information is required.
Proposed TFSA return package
The proposed TFSA return package includes the following:
Cover letter - It provides general information about TFSA rules and instructions regarding what you need to do to respond to the proposed return.
RC243-P, Proposed Tax-Free Savings Account (TFSA) Return - This proposed TFSA return shows the taxes we have calculated and is based on the information we received from your issuers. The proposed TFSA return is not a formal assessment of tax.
RC324, Tax-Free Savings Account (TFSA) Detailed Excess Amount Calculation - This sheet is sent only if you had an excess amount in your TFSA at any time in the year.
Transaction Summary - This shows your TFSA contributions to and withdrawals from your TFSAs for the year as submitted by your issuers, and is sent only if you have contributions or withdrawals in the year.
Return envelope included - This is provided to mail your return and payment or additional documentation, as applicable, to the TFSA Processing Unit.
Responding to the proposed return package
This proposed return does not represent a formal assessment of tax. Although you cannot file a Notice of Objection on a proposed TFSA return, the following three options are available to you:
- If you agree with the information in the attached proposed return, sign, date, and include your Social Insurance Number (SIN) on the return. Send it to us along with your payment in the enclosed addressed envelope. We will issue an assessment based on this return.
- If the information on the TFSA Transaction Summary appears to be incorrect or incomplete, contact your financial institution(s) and ask them to send amended TFSA records to the CRA. In addition, let us know about this by calling our Individual income tax enquiries line at 1-800-959-8281.
- If you do not agree with the assessment on the proposed TFSA return or you would like us to review your situation, you can send us a letter to the address listed below. Please be sure to include an explanation with as much information as possible and any additional documentation about the excess contributions.
TFSA Processing Unit
Post Office Box 9768 Station T
Ottawa ON K1G 3X9
We will review your request and send you a letter explaining our decision. After a notice of assessment has been issued, if you still disagree with our decision, see What should you do if you disagree with your assessment?
If we do not receive a response from you, we will issue an assessment based on the information on file. This assessment will include any penalties and interest that may apply.
Forms and publications
- Form RC243, Tax-Free Savings Account (TFSA) Return
- Form RC243-SCH-A, Schedule A - Excess TFSA Amounts
- Form RC243-SCH-B, Schedule B - Non-Resident Contributions to a Tax-Free Savings Account (TFSA)
- Tax payable on excess TFSA amount
- Tax payable on non-resident contributions
- What should you do if you disagree with your assessment?
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