Im trying to understand how RRSP tax deduction works and how to use it in Turbotax. According to CRA website, you can use the amount you contributed to RRSP to reduce your income. So For Eg. if I earn 100k in 2019 and contribute 10k in 2019 can I deduct 10k from my income and only need to pay tax on the remaining 90k when I file tax for 2019? How do I go about doing this on turbo tax? I dont see any option on turbo tax website to deduct my RRSP contribution.
You use the Find on the top bar to search for RRSP profile > check all options that are applicable to your tax situation and continue.
Before going further you will need the following:
- Your RRSP contribution limit and the HBP information (if any) from last years' tax return's Notice Of Assessment
- contributions receipts from your financial institution from March 2, 2019, to March 1, 2020
- Your contributions for the tax year cannot exceed your contribution limit
- you don't have to deduct all the contribution > you can carry forward some to the following tax years if you wish
The following screenshots are from the TurboTax online. The TurboTax Desktop/Download have similar steps.
When you get to the RSP contribution page > enter the receipts as follows:
The remainder of the year > March 2, 2019 - Dec 31, 2019
The first 60 days > Jan 1, 2020 - March 1, 20120
If you have Home Byer Plan > check the box for the HBP on the next screen > enter the information as follows:
I hope this was helpful