rrsp deduction limit for 2004(canada)

skotti · Post by **skotti** » Fri Apr 22, 2005 10:59 pm

I am using 'taxwiz' program for my taxes. I know that i always have to pay every year. When I look at the screen as i fill it in i see how much i am owing. When I fill in the line for rrsp deduction limit for 2004(which is over $40k according to my assessment)it lowers my amount owing by over $1000. Can this be accurate? If I don't fill in that field, the amount i contributed to my rrsp carries to next year. So by filling in the field, the rrsp contribution stays for this year and the amount owing lowers over $1000. Just checking to see if this is correct?
Thanks

nelsona · Post by **nelsona** » Sat Apr 23, 2005 5:53 am

Sorry, This is a site for cross-border tax issues, and not for debugging software.

nelsona non grata... and non pro

Norbert Schlenker · Post by **Norbert Schlenker** » Mon Apr 25, 2005 11:42 am

That's a bit harsh, eh, Nelson? It's a cross-border forum but, if you can provide a quick answer, why tell the poor fellow to pound sand?

skotti, you can only deduct an RRSP contribution if you have RRSP room (i.e. a deduction limit, as shown on your previous year's Notice of Assessment). If you tell the software there is no deduction limit, it carries the contribution forward for deduction in subsequent years. If you fill in the actual deduction limit, i.e. over $40k, it deducts the contribution on your 2004 return.

That's the way the tax system works and the software matches it.

nelsona · Post by **nelsona** » Mon Apr 25, 2005 12:24 pm

<blockquote id="quote">quote:<hr height="1" noshade id="quote">That's a bit harsh, eh, Nelson?<hr height="1" noshade id="quote"></blockquote id="quote">

Not at all; just didn't want him to sit around all weekend looking for an answer.

nelsona non grata... and non pro