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View Full Version : Question about RRSP?

spiderweb
May 29th, 2009, 08:48 AM
Making 30k annually so if I contribute 100$ per month on RRSP, do I still end up giving money to the government at the end of the year?
jm1
May 29th, 2009, 11:24 AM
The way taxes work is that your employer will deduct enough from your paycheque to cover almost 100% of your taxes IF you have no other income or deductions. It should work out very close, like +/- $10. If you have any other income (interest from your bank account, investments, etc.), then you'll owe more for taxes. If you have any deductions (eg. RRSP, tuition, etc.), then you'll owe less and get back some money that your employer took from your paycheque.

So the answer to your question depends on this "other" stuff. If you have $100/mo of extra income, then the $100/mo RRSP deduction will offset it. If you have less than $100/mo in other income, then you should get a refund because your RRSP deduction is higher than what you need to offset it.
spiderweb
May 29th, 2009, 04:21 PM
The way taxes work is that your employer will deduct enough from your paycheque to cover almost 100% of your taxes IF you have no other income or deductions. It should work out very close, like +/- $10. If you have any other income (interest from your bank account, investments, etc.), then you'll owe more for taxes. If you have any deductions (eg. RRSP, tuition, etc.), then you'll owe less and get back some money that your employer took from your paycheque.

So the answer to your question depends on this "other" stuff. If you have $100/mo of extra income, then the $100/mo RRSP deduction will offset it. If you have less than $100/mo in other income, then you should get a refund because your RRSP deduction is higher than what you need to offset it.



Thanks