Contribution limit showing as $0 | Tax Free Savings Accounts | Discussion forum

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?

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

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.

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.

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.

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.

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?

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.