What about my taxes – February 2020 Edition

February – The time of year you expect to be ridiculously cold and wish upon any star you see that there will be another chinook rolling through. But while you are trying to stay warm and in-between said wishes, you might want to think about your taxes. Yes, 2019 is over and you have been starting to collect your tax documents; you ay have already received some slips in the mail for last year. However, there is one slip in particular you will want to pay attention to every February – RRSP Contributions. You might not have the slip yet, but if you do, you should take a look at the dates mentioned. If you look close enough, you’ll see that it states “March to December 2019”. That’s because the time you can contribute to an RRSP is staggered from a regular calendar year – March 1st to February 28th in most cases.

The benefit is that you still have all month to contribute to your RRSP and have it influence 2019. It might be worth taking advantage of this opportunity, especially if you might owe on your taxes and want to find a way to hang onto it a little longer. If you want more of the details on RRSP contributions, and what they can do for you, check out our newest article – How to reduce my taxes and keep my money. If you want the quick version of the article, just check out the following points below:

  • Limit – Find it on your Notice of Assessment and make sure you don’t over-contribute as CRA will penalize you for going over

  • Impact – Contributing to an RRSP gives you around 25% of that contribution back as a tax savings or tax refund

  • Deadlines – You have until Monday, March 2, 2020 to contribute and have it impact your 2019 taxes

  • Programs – RRSP’s are useful if you are looking at full-time training or education, or if you plan to buy or build a home

  • Two Slips – If you contribute regularly, you will want to makes sure you get both RRSP contribution slips before you file your taxes

Here at Zablocki & Associates, we look to find you ways to save you money, and hopefully you found this article quick enough to help you have that extra control on what happens with your taxes this time around. If you still aren’t sure about whether RRSP’s can help you and your family out, you can always give us a call or email and we’ll help you figure that out. We will even run an estimate for you to let you know more specifically to your situation free of charg

Neil Devine