Amateur Athlete Trust (AAT)The Canada Revenue Agency (CRA) considers the income paid after 2013 to a trust for the benefit of an amateur athlete (AAT) as earned income, for the purposes of determining the limit on contributions to the registered retirement savings plan (RRSP) for the beneficiary of the trust.
Therefore, the beneficiary may add this amount as earned income in the calculation to determine the contribution limit to an RRSP or PRPP/VRSP for the following year.
To enter this amount, please follow these steps:
1. In the "Left-side menu on the Interview tab", select the "RRSP contributions, limits".
2. On the page entitled ''Contributions to a RRSP or PRPP/VRSP", go to the line "2019Income placed in an amateur athlete trust (AAT) (Ann.7 L.267)" and enter the amount that was paid to the AAT.
This amount will be reported on line 26700 of federal Schedule 7.
Take note that an athlete may elect to include the payments made in the years 2011, 2012 and 2013 by sending a letter to the CRA with a certificate from the trustee that sets payments for your AAT in order to determine a new "RRSP deduction limit".
For more information, please consult the following CRA links:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4040.html
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2014-road-balance-creating-jobs-opportunities/budget-2014-amateur-athlete-trust.html
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Webpage: KPA385-20200225084759DE.htm