What’s New for 2020 Tax Returns:

RRSPs

The deadline for contributing to your own or a spousal RRSP, to use the contribution as a deduction on your 2020 tax return, is March 1st, 2021. Your allowable deduction limit for the year can be found on your Notice of Assessment from 2019, on the CRA website using the My Account services or by calling our office.

The 2020 maximum RRSP deduction is 18% of income earned in 2019 to a maximum of $27,230 plus any unused deduction room from prior years, less any pension adjustment amount on your 2019 T4 slip(s).

Contributions above the allowable limit may be carried forward for use in a future year. Likewise, if you do not make contributions up to the maximum allowed, your deduction is not lost. The unused ‘contribution room’ will carry forward for your use in future years.

Please be sure to include in your 2020 filing all RRSP deduction receipts for contributions made between March 1st, 2020 and March 1st, 2021. Even if you intend to carry over the contributions made in the first 60 days of 2021 you MUST report them on your 2020 return.