RC728 — First Home Savings Account (FHSA) Return

Form RC728, First Home Savings Account (FHSA) Return is used to report and calculate taxes payable on certain FHSA events, such as excess contributions, non-qualified investments, prohibited investments, and advantages received in relation to your FHSA during the tax year.

📥 Download the Form

• RC728 — Standard PDF
• RC728 — Accessible Fillable PDF (use Acrobat Reader 10+)
• Official RC728 page on Canada.ca

🧾 When You Must File RC728

You must file Form RC728 if you have FHSA taxes payable for the year. This includes tax for:

• Excess FHSA amounts (over-contributions) — 1% tax per month on the highest excess amount.
• Non-qualified investments held in your FHSA.
• Prohibited investments in your FHSA.
• Advantages received through the FHSA.

Most FHSA holders do not owe FHSA tax, and therefore do not need to file RC728 unless one of these situations applies.

📆 Filing Deadline

The return and any taxes payable are generally due on or before June 30 of the year following the year in which FHSA taxes became payable. If you file late, penalties and interest may apply.

📊 Related Schedules and Forms

• RC728-SCH-A — Schedule A: Excess FHSA Amounts — used when you have excess FHSA amounts and must calculate tax owing.
• RC729 — Request for Waiver or Cancellation of Tax on your Excess FHSA Amount — for requesting relief from excess-FHSA tax.

📋 Filing Steps

1. Download and save the RC728 PDF to your computer (open with Acrobat Reader 10 or later).
2. Complete all applicable sections that relate to your FHSA transactions during the year.
3. If you have excess FHSA amounts, complete and attach Schedule A.
4. Submit the return and pay any tax owing by the due date (typically June 30).

📌 Common Scenarios That Trigger RC728 Filing

Examples include:

• You contributed or transferred more to your FHSA than your available participation room.
• You held non-qualified or prohibited investments in your FHSA during the year.
• An advantage (such as a benefit or loan) was provided in relation to your FHSA.

📍 Important Tips

• If you do not file when required, the CRA may issue an assessment based on available information and charge interest until the balance owing is paid.
• Keeping accurate FHSA contribution and transaction records helps ensure correct reporting and avoids unnecessary tax.
• If you disagree with an FHSA assessment or reassessment, you can request an explanation from the CRA.

🧠 FHSA Background (Context)

The First Home Savings Account (FHSA) is a registered plan that helps first-time home buyers save tax-free for a home purchase. Contributions are tax deductible, and qualifying withdrawals for a first home purchase are tax free.

RC728 is specifically designed to report FHSA situations where tax is payable (excess contributions, etc.).