What Happens If You Repay More or Less on Your LLP? (Part 4)

Life can be unpredictable, and so can your ability to make your Lifelong Learning Plan (LLP) repayments. The CRA has rules for different scenarios:

• Repaying Less: If you repay less than the required amount for a year, the difference that wasn't repaid will be included in your income for that tax year. This means you'll pay tax on that amount.

  
  

• Repaying More: If you're able to repay more than the required amount for a year, that's great! It will reduce your future repayment obligations, helping you clear your LLP balance sooner.

  
  

The LLP offers flexibility, but it's important to understand the consequences of your repayment choices.

Source: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/lifelong-learning-plan/repayments-your-rrsp-under.html