Jamie11
New Member

I withdrew from RSPs in 2014. How much tax should I be paying on it?

I withdrew $7500 from my RSP in 2014.  They held back 20% tax at that time ($1500).  When i plug the numbers into turbo tax it takes an additional $1500 off of my tax return.  If I assume that withdrawl is added to the top portion of my income then I should be paying 26% tax on it.  By my math I should be paying an additional $450 not $1500.  Can someone shed some light?  

‎October 29, 2019 7:18 PM
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TonyC11
Level 6

Seniors and students

26% is just federal tax. If you are in ON you will have an extra amount for provincial tax and surtax . This brings you to the extra tax amount.

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‎October 29, 2019 7:18 PM
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Jamie11
New Member

Seniors and students

Thanks.  I didn't realize just how deep the man had his hand in my pocket (39.41% of the way down).  Ouch.
‎October 29, 2019 7:18 PM
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TonyC11
Level 6

Seniors and students

Yes I'm afraid so, ON surtax and health premium are bummers. I got burned selfsame way with a $5k RRSP withdrawal 2 years ago....won't do that again before RIFing.
‎October 29, 2019 7:18 PM
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TonyC11
Level 6

Seniors and students

And because it was only $5k I had only paid 10% upfront tax....
‎October 29, 2019 7:18 PM
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Jamie11
New Member

Seniors and students

That's a nasty surprise eh?  I'm gonna start burying gold bars in the back yard.
‎October 29, 2019 7:18 PM
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