Hi there,
Thanks for your question. The $800 refund is because you have reduced your taxable income by $3200, and therefore you owe less taxes. Your deduction limit is the maximum amount you CAN deduct from your taxable income, but if you made $3200 in contributions this year, that is how your annual deduction is calculated. So if you actually contributed $44,000 to your RRSP this year, then you would be able to reduce your taxable income by $44,000, resulting in a higher overall refund.
Thanks for choosing TurboTax!
Danielle
