The T4FHSA, or Statement of First Home Savings Account (FHSA), is the slip your financial institution issues for each year your FHSA had activity. It is unusual among registered-plan slips in reporting money going in as well as money coming out: Box 18 shows your contributions, which support the deduction you claim, while other boxes separate tax-free home-purchase withdrawals from taxable ones. Everything on it goes through Schedule 15 of your return.
| Feature | Details |
|---|---|
| Full name | Statement of First Home Savings Account (FHSA) |
| Issued by | The financial institution holding your FHSA |
| Reports | Contributions, qualifying withdrawals, taxable withdrawals, amounts on death, amounts when the account ceases |
| Tax treatment | Depends on the box |
Like most slips, it is issued by the last day of February; the tax slips table lists every slip’s deadline. How the account itself works (who can open one, the yearly and lifetime room, and when it must close) is covered in the FHSA guide.
T4FHSA boxes explained
| Box | Description | Tax treatment |
|---|---|---|
| 12 | Recipient’s SIN | Identification only |
| 14 | FHSA contract number | Identification only |
| 16 | FHSA identification number (CRA-assigned specimen plan number) | Not income; identification only |
| 18 | Contributions made by the holder during the year | Supports your line 20805 deduction claim |
| 20 | Qualifying withdrawals (used to buy or build a qualifying home) | Tax-free |
| 22 | Taxable withdrawals (any withdrawal that is not a qualifying withdrawal) | Fully taxable income |
| 24 | Amount received by a beneficiary on the death of the FHSA holder | Taxable to the beneficiary, with exceptions for a spouse who becomes successor holder |
| 26 | Amount deemed received when the FHSA ceases to exist (for example, the account reaches its time limit without a qualifying withdrawal) | Taxable, unless transferred directly to an RRSP or RRIF |
What each box means for your return
Box 18: contributions
Box 18 is the total you contributed in the calendar year. You report it on Schedule 15 and claim the FHSA deduction on line 20805. Unused deduction room carries forward, so track it even in years with no contribution. The annual and lifetime room is explained in the FHSA contribution limit.
Box 20: qualifying withdrawals
A qualifying withdrawal is the tax-free withdrawal used to buy your first qualifying home. It is reported on Schedule 15 as information only; it isn’t included in your income and isn’t repaid.
You withdraw $35,000 from your FHSA to help buy your first home. Box 20 shows $35,000, Schedule 15 records it, and none of it is added to your income.
The conditions a withdrawal has to meet to be tax-free (first-time buyer status, a written agreement before you withdraw, a home in Canada you intend to live in) are set out in FHSA withdrawal rules. If a withdrawal doesn’t meet them, the institution reports it in Box 22 instead.
Box 22: taxable withdrawals
Any withdrawal that isn’t a qualifying withdrawal is fully taxable. It is included in your income on line 12905 through Schedule 15, and any tax withheld at source is claimed on line 43700.
You withdraw $10,000 and don’t buy a home. Box 22 shows $10,000, and the full amount is added to your income and taxed at your marginal rate.
When a withdrawal becomes taxable, and the options when a purchase falls through, are explained in withdrawing from an FHSA without buying a home.
Box 26 and transfers to an RRSP or RRIF
A direct transfer of your FHSA balance to your RRSP or RRIF (because you didn’t buy a home) is not itself a taxable withdrawal and doesn’t use RRSP room. It reduces the taxable amount that would otherwise be deemed received under Box 26, rather than appearing in a taxable box of its own, and you report it on Schedule 15 as a direct transfer. If the account simply lapses without a qualifying withdrawal or a transfer, the remaining value is the Box 26 amount and is taxable. The transferred money later comes out of the RRSP or RRIF on a T4RSP or T4RIF, taxed like any other withdrawal.
Box 24: when the FHSA holder dies
If the holder dies and a spouse or common-law partner becomes the successor holder, the account carries on in the survivor’s name and nothing is paid out. Otherwise, a beneficiary who receives the money gets a T4FHSA with the amount in Box 24, which is taxable to them unless it is transferred to their own FHSA, RRSP or RRIF where the rules allow it.
How to report a T4FHSA
| T4FHSA box | Where it goes | Effect on income |
|---|---|---|
| Box 18 (contributions) | Schedule 15; deduction on line 20805 | Reduces income when deducted |
| Box 20 (qualifying withdrawal) | Schedule 15, as information | None |
| Box 22 (taxable withdrawal) | Schedule 15 and line 12905; tax withheld on line 43700 | Added to income |
| Box 24 (amount on death) | The beneficiary’s return | Added to the beneficiary’s income unless transferred |
| Box 26 (deemed received) | Schedule 15 | Added to income, less any direct transfer |
| Direct transfer to an RRSP or RRIF | Schedule 15, as a direct transfer | None |
Using the FHSA and the RRSP Home Buyers’ Plan together for one purchase produces two slips, a T4FHSA (Box 20) and a T4RSP (Box 27); using the FHSA and the HBP at the same time compares the two programs.
Common T4FHSA mistakes
| Mistake | Consequence |
|---|---|
| Treating a Box 22 amount as tax-free | Income under-reported and a reassessment |
| Withdrawing before a written purchase agreement is in place | The withdrawal may not qualify as tax-free |
| Withdrawing a closing account’s balance instead of transferring it | A taxable amount that a direct transfer would have avoided |
Related pages
- Canadian tax slips at a glance
- The T4RSP slip, for Home Buyers’ Plan withdrawals
- The FHSA guide
- First-time home buyer programs