Personal Finance

60k income contribute 10k RRSP does income become 50k

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  • Feb 27th, 2016 3:19 pm
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Newbie
Sep 8, 2015
22 posts
East York, ON

60k income contribute 10k RRSP does income become 50k

i want my kids to get free wynn tuition ... If i contribute 10k will my income be 50k and qualify
5 replies
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
-RRSP contributions reduce taxable income below your net income
-"Household income" calcs are often off of net income, and therefore unaffected
-Some changes are effective fall 2016 and others fall 2017
Banned
Feb 23, 2016
12 posts
3 upvotes
Mike15 wrote: -RRSP contributions reduce taxable income below your net income
-"Household income" calcs are often off of net income, and therefore unaffected
-Some changes are effective fall 2016 and others fall 2017
Yes...this won'
t allow you to drop your income below the 50k threshold..
Deal Expert
User avatar
Dec 7, 2012
32228 posts
8694 upvotes
GTHA
MaxPower1 wrote: i want my kids to get free wynn tuition ... If i contribute 10k will my income be 50k and qualify
It is not going to totally 'free' for parents making less then $50k a year.

Ontario’s ‘free tuition’ promise doesn’t add up
Provincial government claims average university tuition in Ontario costs $6,160. Statistics Canada says it’s $7,868.
Yesterday the Ontario government claimed that most students from families making under $50,000 will be able to attend college or university for free in 2017. So far the response has been overwhelmingly positive, with university administrators, faculty associations and student groups all welcoming the changes.

There’s just one problem: the numbers don’t add up.

The government’s math is based on the idea that average undergraduate university tuition costs $6,160. According to Statistics Canada, average undergraduate tuition in Ontario is currently $7,868. That leaves a $1,700 gap without even counting the tuition increase of roughly four per cent scheduled for 2017.

It’s the same story for colleges. Ontario’s math requires college tuition to be $2,768. According to Colleges Ontario, while average tuition is $2,400 for diploma programs, it’s $3,600 for graduate certificate programs, $5,000 for collaborative programs and $6,100 for bachelor’s programs.

Minister for Training Colleges and Universities Reza Moridi has an explanation for the discrepancy: Ontario doesn’t count more expensive programs when determining its average. For colleges the government only counts diploma programs. For universities the government only counts tuition fees in arts and science programs, leaving out the more costly tuition fees in professional programs such as engineering.

“Engineering students have to pay a little more. Arts and science students, it will be completely free for them,” says Moridi. Moridi defended the use of the lower figures by saying: “They have to use a figure, so that’s the figure they have been using in the ministry.”

Moridi argues the underlying goal—to get more low-income students to graduate from post-secondary institutions—is noble. As he put it: “This is a major milestone. Yesterday was the best day in my life as a politician.”

In 2012, the provincial Liberals promised a 30-per-cent reduction in tuition. After an initial flurry of positive media coverage, the Liberals came under fire for eliminating grants that helped vulnerable students instead of allocating new money to pay for the 30-per-cent reduction. Similarly, Moridi explains that this program will be paid for by consolidating existing student aid programs.

This time, though, student groups are welcoming the changes. Raejan Hoilett, chair of the Canadian Federation of Students-Ontario, is pleased that the government is consolidating the many current student aid programs into one. “Having one application will really simplify things and reduce one more barrier for students from a low socio-economic background who are already facing so many struggles,” says Hoilett.

Hoilett’s concerns are about the fine print: “Undergraduate students actually paid $7,868 last year and graduate students paid $8,971. This is an amazing step forward and it will help a lot of students in need but $6,160 is not the real cost of education.”

Hoilett argues that for low-income students, a $1,500 gap can make a huge difference. He also thinks that solely counting tuition fees doesn’t reflect the real cost to students.

“None of these estimates include mandatory student fees, which are often over $1,000,” says Hoilett. For example, students at Guelph University paid $1,163.59 in mandatory fees this year. It’s a similar story for college students, who can expect to pay about $800 in mandatory fees.

Spencer Nestico-Semianiw, president of the Ontario Undergraduate Student Alliance, shares similar concerns: “Overall, I think these changes are worth celebrating, but the way they count tuition and the way they don’t include student fees creates this impression that there won’t be any cost to low income families, and that’s not true.”
Newbie
Sep 8, 2015
22 posts
East York, ON
Thanks for the replies... I didnt mean to make it a jab at anti liberal stuff...

I was just hoping to qualify for "low income" through tax "loopholes"

Thanks again
Deal Fanatic
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Feb 19, 2010
6237 posts
2992 upvotes
MaxPower1 wrote: Thanks for the replies... I didnt mean to make it a jab at anti liberal stuff...

I was just hoping to qualify for "low income" through tax "loopholes"

Thanks again
Subscribing to the stupidity of the Liberal budget isn't anywhere close to taking a "jab" at it. It's endorsing it.

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