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LeonConcord
Returning Member

RRSP contribution without income in family

Hello, 

 

  My wife was on disability in 2022 and didn't work but still contributed to RRSP 3,000$.

 

  I was going to use a carry forward option for the contribution she did, so she can use that amount and reduce tax in the future after she is back to work. But then I realized that without carrying it forward the contribution significantly reduces my tax (I fill our taxes together in Turbo Tax). Why it happens? Why my wife's contribution reduces my tax? I don't think it has anything to do with spousal contribution - it still her money, not mine...

Appreciate any help to understand it. 

3 Replies

RRSP contribution without income in family

Did you enter the amount of RRSP she contributed under "Contribution amount to your spouse's RRSPs"? 

LeonConcord
Returning Member

RRSP contribution without income in family

No, I didn't because it was her contribution, not mine.

LeonConcord
Returning Member

RRSP contribution without income in family

One more interesting fact. It only happens when my wife has small income from employment insurance (T4E), with tax of 345$ on it. While the return I get from her RRSP is much bigger than 345$. If I delete T4E then her RRSP doesn't increase the refund.