FHSA

In the year an FHSA account is opened and each subsequent year, a person can contribute $8,000 per year up to a maximum of $40,000 in total.

If less than $8,000 is contributed in a year the balance can be carried forward to the next year. For example if an account was opened in 2024 with a $6,000 contribution, then $2,000 is carried forward to 2025. In 2025 the person can contribute $10,000 ($8,000 + $2,000).

But the maximum carryover is $8,000. For example, if a person contributed $0 in 2024 and $1,000 in 2025, the carryover into 2026 is not $15,000 ($8,000 + $7,000). Instead the carryover is limited to the maximum $8,000. Therefore in 2026 the person could contribute $8,000 (the amount for 2026) + $8,000 (the maximum carryover).  In any given year the contribution amount can never be more than $16,000.

If an FHSA account is opened but no contribution is made in that opening year, the person must still file a Schedule 15. This will cause the CRA to report a participation room of $8,000 for that year of opening, which will be carried over into the next year.

After the first year of opening, the CRA will issue a Participation Room Statement for each subsequent tax year. The statement may be attached to a Notice of Assessment, or may be found in a CRA account. To find it in an online account, click the ‘Savings and pension plans’ tab and then select ‘View FHSA details’ in the FHSA section. The Statement will contain various numbers that are needed to properly complete Schedule 15.

UFile Steps:

Steps need to be taken if the client made a contribution, or if they opened an account (with or without making a contribution.

1.        If there is a T4FHSA slip, enter it by selecting the slip from the section, ‘T4A, T4FHSA and pension income’.

2.        In the interview section on the left, click ‘HBP, LLP, FHSA and other plans and funds’ and go to the section, ‘FHSA information and limits’. Complete the section using information from the prior year’s Schedule 15, and the Participation Room Statement. The Statement may be found attached as part of the prior tax year’s Notice of Assessment, or in the client’s CRA account, under the ‘Savings and pension plans’ section.

3.        In UFile’s ‘Tax Return’ section, review Schedule 15 and ensure it properly reflects the client’s situation. The client’s contribution for the year should not have been greater than the amount on Line 51 of the Schedule.

Note: It is unclear if using AFR will download the amounts from the Participation Room Statement.

Note: It is unclear if the Participation Room Statement is available to view by CVITP (level 1) representatives though represent-a-client service.