Reduce your Taxes by Contributing to your RRSP

You have been working all year and you don”t think you have paid enough in taxes but you don’t want to pay any more?  You would rather pay the amount you owe to yourself?  Well how much do you need to pay in order to help yourself at the end of the year.  There is a tool to help you here and it is a good idea to look at this as soon as you can and make some plans before February 28 ! 

The main advantage of a RRSP, other than reducing your tax payments, is easing your saving effort for retirement. It allows you to accumulate savings in a simpler way than if you would cash all your yearly income, pay the taxes on it and then invest the money. By being tax deductible, you invest your money first, and then pay tax on your yearly income less the contribution, which decreases tax payment and optimizes your savings for retirement.

Here are a couple of sites where you can estimate how much you should invest in an RRSP to save on the taxes that you pay:

http://ativa.com/rrsp-tax-savings-calculator/

http://www.ey.com/ca/en/services/tax/tax-calculators-2016-rrsp-savings