☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Feb 2, 2021 8:34:45 AM

TurboTax 2020 RRSP Wizard shows roughly constant refund regardless of contribution amount

Hi,

When I use the RRSP Wizard, it shows roughly a constant refund no matter how large a contribution I select.  I am setup to do my tax return and my wife's as well.  The default refund value was around 4000.  If I select to contribute an additional 25,000 it shows around 4000 as well.  

Is the RRSP Wizard working for others?

 

Thanks,

David

0 1 551
1 Replies
Level 6
Feb 2, 2021 1:13:33 PM

The amounts contributed to your RRSP reduces your net income. Once the amount of RRSP deducted fills this need to reduce the net income, the difference made in the refund will be less as some of the RRSP contributions are not used. The rest of the contributions which have no effect on your taxes can be carried forward to reduce the next year's net income amount in order to pay fewer taxes.

 

For more information please review the TurboTax link included below.

 

RRSPs and Your Tax Return: The Bottom Line