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 the non-deductible PRPP contribution room 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 2017 tax software:

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

  2. Under Contributions to a Canadian or foreign retirement or pension plan, like a registered pension plan (RPP), pooled registered pension plan (PRPP), or 401(k), click the Add This button.

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

    DIY17_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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