The FHSA deduction in one sentence: contributions made by Dec 31, 2025 go on Schedule 15 of your T1, the deduction flows to line 20805, and at a 30% combined marginal rate you save ~$2,400 for every $8,000 contributed. Use our FHSA Contribution Room Calculator to confirm how much room you have first.

Step 1 — Find your T4FHSA slip

Your FHSA issuer (Wealthsimple, your bank, Questrade) sent you a T4FHSA by the end of February. If you have multiple FHSAs, you get one T4FHSA per institution. Key boxes:

• Box 18: Total FHSA contributions in the tax year
• Box 24: Qualifying withdrawals (for first home purchase)
• Box 22: Designated transfers from RRSP to FHSA

If your CRA My Account is set up, the slip also auto-imports via Auto-fill My Return. Lost it? See our CRA My Account setup guide — once you're in, every T-slip CRA has on file is one click away.

Step 2 — Confirm your FHSA contribution room

Don't deduct more than you have room for — over-contributions get hit with a 1% per month penalty. Use our FHSA Contribution Room Calculator to see your 2025 room based on the year you opened your FHSA.

Step 3 — Enter on Schedule 15 (FHSA)

In any NETFILE-certified software, search for "FHSA" or "Schedule 15":

• Wealthsimple Tax: Add Section → search "FHSA" → enter T4FHSA box-by-box. Auto-flows to line 20805.
• TurboTax: Deductions → "First Home Savings Account contributions" → enter T4FHSA. Available on Free tier.
• UFile: Interview → Investment income → "FHSA Contribution" → enter T4FHSA. Available on Free tier with eligibility.

Compare the three softwares in our full Wealthsimple Tax vs TurboTax vs UFile (2026) comparison.

Step 4 — Choose: deduct now or carry forward?

FHSA deductions can be carried forward indefinitely — you don't have to claim them the year you contributed. Two scenarios:

• Deduct now if you're at your peak earning years and a high marginal tax rate (30%+ combined). $8,000 deducted at 40% = $3,200 of tax saved.
• Carry forward if 2025 was a low-income year (parental leave, sabbatical, between jobs). Save the deduction for a higher-income year.

Either way, you must report the contribution on Schedule 15 for the year it was made. The carry-forward only applies to the deduction, not the contribution itself.

Step 5 — Verify the result on line 20805

Look at your T1 jacket — line 20805 should show the FHSA deduction you claimed. It sits right above the RRSP deduction (line 20800). Total deductions flow to your net income on line 23600.

What if I'm withdrawing from my FHSA?

Two cases:

1. Qualifying withdrawal (first home): file Form RC725. Withdrawal is tax-free, including all growth. Box 24 of T4FHSA is informational.
2. Non-qualifying withdrawal: the full amount goes on line 12905 of your T1 as taxable income. Your FHSA issuer will withhold tax at source.

Common FHSA filing mistakes

• Treating January contributions as last year's deduction. No — FHSA is calendar year, not RRSP-style 60-day grace.
• Over-contributing. Max $8,000/yr ($16,000 with 1-year carry-forward). Over the lifetime $40,000 cap = 1% per month penalty.
• Forgetting Schedule 15 if you contributed but didn't claim a deduction. The contribution itself must be reported even if you carry forward the deduction.
• Mixing FHSA and HBP. They're stackable — you can use both for the same first home — but each has its own form (RC725 for FHSA, T1036 for HBP). See our HBP Calculator.

Next year: open even if you can't contribute yet

FHSA contribution room only starts accruing the year you open your account (not the year you turn 18). If you might buy a home in the next 5–10 years, open a $0-balance FHSA at any major institution today — it costs nothing and starts the room clock. Confirm your room: FHSA Room Calculator.