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How much do wilkinsons pay?

How much do I pay deposit for RRSP to avoid paying taxes?

  • Here's some details - I work at two places, neither is aware of the other one so no adjustments to the deductions are made. At place #1 I earn $50.000/year before taxes, and they deduct the taxes from every paycheck. At place #2 I earn $6.000/year before taxes, and they also deduct taxes from every paycheck. Rough calculations (http://lsminsurance.ca/calculators/canada/income-tax/2009) say I have to pay a little over $11.000 in taxes, and that company A has already deducted (if they're doing their accounting well) around $9.500, which leaves me owing the government about $1.500. So now, question #1: Are the above rough calculations somewhat accurate, or are they way off? and question #2: How much $$$ in RRSP do I have to deposit so I don't have to pay the $1.500 I owe the government? Or, if I am not allowed to pay that much, what's the maximum I can pay in RRSP, and by paying that much, how much in taxes will I have to pay? Btw. this is for 2009. Thanks!

  • Answer:

    I went through that calculator as well, and I'd say it's fairly accurate, but it doesn't seem to take into account that you would also be paying CPP and EI premiums. There is a maximum to each, and you will easily reach it on the $50,000 job. Any CPP or EI collected from the $6,000 will be creditted to you as an over payment, and will also reduce your income tax obligation. This won't amount to very much, though. Probably about $225. In either case, take a look at the calculator again. Each dollar that you put into your RRSP will reduce your income tax by the Marginal Tax Rate. For example, if you're in Ontario, you would have a marginal tax rate of 31.15%. If you contribute $1,000, your income tax would be reduced by $311.50 ($1,000 * .3115). Before you make a contribution, check your Notice of Assessment for 2008, or contact the CRA to find out what your RRSP contribution limit is. Over contributing doesn't help you, and can subject you to some rather stiff penalty.

AlexGrea... at Yahoo! Answers Visit the source

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If you have the RRSP room from previous years, which you can find on your notice of assessment for 2008 and if you put $5,000.00 in an RRSP you would get about $36.48 back. Now do you want to tie up $5,000.00 in an RRSP or just pay the $1,500.00 in taxes owing.

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