# RRSP deadline to reduce taxable income



## Chrysaphius (Jun 16, 2021)

Hello, 

I am getting conflicting information from sources offline about deadlines for RRSP contributions. 

If I want to reduce the income I am taxed on for 2021, when is the last date I can contribute some funds into an RRSP?

Also, how does it work exactly. If I make 50k a year, and I invest 5k into an RRSP in that same year, before December 31st, will I only get taxed on a working income of 50k from my job? (This scenario any other sources of income).

Please advise.


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## ian (Jun 18, 2016)

March 1, 2022 is the deadline for the 2021 tax year. So, if you contribute on Feb 28. 2022 you can apply it to either your 2021 or your 2022 tax as a deduction from taxable income.


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## Eclectic21 (Jun 25, 2021)

The last day you can contribute to an RRSP and have the deduction taken against 2021 income is the sixtieth day of 2022 (it usually works out to about Mar 1st 2022).

CRA hasn't updated it yet for tax year 2021 but here is the link for tax year 2020 that identifies March 1st, 2021 as the last day.




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Important dates for RRSP, RDSP, HBP and LLP - Canada.ca


Décès du rentier d'un REER ou d'un FERR - Exemple




www.canada.ca






How is works is that you report all sources of taxable income on your 2021 tax return. Schedule 7 reports what RRSP contributions were made and what amount you want to deduct on your 2021 tax return. What is being deducted is transferred to line 20800 "RRSP Deduction".

Line 23300 totals all of the deductions available.
Line 23400 subtracts the total number of deductions from income.


For your example, if you made $50K of employment income plus another $10K of interest income then your total income is $60K. If you make a $5K RRSP contribution that you choose on Schedule 7 to deduct then it's $60K - $5K = $55K for your net income.

Each dollar of RRSP contribution that is deducted wipes out a dollar of income, no matter the source.

Cheers


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## Spudd (Oct 11, 2011)

If you make 50k from your job, and you put 5k in an RRSP, essentially you will be taxed on 45k income instead of 50k.


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## AltaRed (Jun 8, 2009)

ian said:


> March 1, 2022 is the deadline for the 2021 tax year. So, if you contribute on Feb 28. 2022 you can apply it to either your 2021 or your 2022 tax as a deduction from taxable income.


That is how I always understood it as well... Jan and Feb (e.g. 2021) contributions could be either allocated to the prior tax year (2020) or carried forward to the 2021 tax year. I always used to contribute ASAP for the tax year.

That all said, I have been corrected by a few folks in the past saying that is not correct... that the contribution year is Mar 1st through Feb 28th as per this link Contribution year - Canada.ca and repeated here https://help.simpletax.ca/questions/claim-rrsp-contributions-from-jan-feb-mar

YMMV


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## MrMatt (Dec 21, 2011)

AltaRed said:


> That is how I always understood it as well... Jan and Feb (e.g. 2021) contributions could be either allocated to the prior tax year (2020) or carried forward to the 2021 tax year. I always used to contribute ASAP for the tax year.
> 
> That all said, I have been corrected by a few folks in the past saying that is not correct... that the contribution year is Mar 1st through Feb 28th as per this link Contribution year - Canada.ca and repeated here https://help.simpletax.ca/questions/claim-rrsp-contributions-from-jan-feb-mar
> 
> YMMV


I believe all contributions can be carried forward indefinitely.


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## AltaRed (Jun 8, 2009)

Provided the contribution room is available. That said, like you, it has always been my understanding that both contribution AND deduction against tax can be carried forward indefinitely.


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