The deadline to contribute to your 2020 RRSP is fast approaching. Many people use this time to top up their RRSPs in order to maximize their deduction and increase their tax refund.
This year the deadline is March 1, 2021.
It is important to meet the deadline in order to maximize your personal tax benefits. If you however miss the deadline the remaining contribution room will roll over to the following year.
You can contribute 18% of the income reported on your previous year’s tax return, or $27,230, whichever is less. You will receive an RRSP tax receipt for 2020 if you contributed between March 2 and December 31, 2020. You may also receive an additional tax receipt as an early contributor for 2021, as long as you contribute between January 1 and March 1, 2020.
Find out your contribution room by logging into MyCRA or by asking your accountant. Are you looking to maximize your RRSP contribution this year while preparing your 2020 personal tax return? Our team can help!
Published by Elite Accounting Inc.
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