JAIKS BLOG

JAIKS BLOG

We are pleased to provide a variety of resources on accounting, taxation and other related subjects that we hope will be helpful to both individuals and businesses.


Browse through our Quick Tools resource menu then, if you have a question that isn’t answered, we can help. Simply contact us by email or give us a call at 289-926-9371. We would be happy to meet with you for a free, no-obligation consultation.

RRSP Contributions

Hello Everyone, T4’s are right around the corner and with them information on your yearly gross income. It’s never too early to think of the future, especially if it’s been a particularly good year and you find yourself in a higher tax bracket. It may be time to sit down and discuss an RRSP. The contribution deadline is March 1st. It’s certainly worth considering, as strategic RRSP contributions could save you thousands of dollars.

Even if your income hasn’t changed from the previous year there can be a number benefits to making an RRSP contributions. Making an RRSP contribution could lower your income tax bracket. If for example you make 52,000 dollars per year, a 3000 dollar RRSP contribution that year will bring you from the 26% tax bracket to the 20.5% bracket. Furthermore, deferring a portion of taxable income until the money is withdrawn at retirement means that you may be in an even in a lower earning tax bracket at that time, in addition to collecting the interest that the RRSP will accumulate.

The maximum amount of RRSP contributions for the year 2017 is the lowest of 18% of your earned income from the previous year or $26,010. Income for the purposes of this measurement includes salary or wages, rental income, alimony, and other income sources that are not investment income. It’s important to remember that if you’re the member of a Company Pension Plan or Deferred Profit Sharing Plan, the amount that will be deducted from your RRSP limit is easy to see on your T4 as your Pension Adjustment.

European Pension
Tax Changes for Your 2016 Return
 

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Thursday, 23 November 2017