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
ID: 20200225084759DE.xml
Webpage: KPA385-20200225084759DE.htm
