Am I understanding RRSPs correctly?
I’m just wondering if putting money in an RRSP is going to work in my situation. My income and taxes for 2018 are as follows:
Gross: 152879
Taxes: 44842
CPP/EI: 3452
I worked overtime and had different rates of pay over differenent pay periods so my tax rate wasn’t accurate through the year and basically from an online calculator says I should have paid 47659 in taxes.
My question if I put 10000 into an RRSP, is the amount of money I will have to pay taxes on drop to 142879?
And based on that amount the online calculator says I only would’ve owed 43021 and therefore I would get the difference?
I’m planning on using the RRSP as a down payment for first time home buyer, I live in Ontario if that makes a difference.
Am I understanding how an RRSP works for tax purposes?
Any advice or different suggestions?
Gross: 152879
Taxes: 44842
CPP/EI: 3452
I worked overtime and had different rates of pay over differenent pay periods so my tax rate wasn’t accurate through the year and basically from an online calculator says I should have paid 47659 in taxes.
My question if I put 10000 into an RRSP, is the amount of money I will have to pay taxes on drop to 142879?
And based on that amount the online calculator says I only would’ve owed 43021 and therefore I would get the difference?
I’m planning on using the RRSP as a down payment for first time home buyer, I live in Ontario if that makes a difference.
Am I understanding how an RRSP works for tax purposes?
Any advice or different suggestions?