As per the Canada Revenue Agency (CRA):
"The Canada Revenue Agency generally calculates your RRSP deduction limit as follows:
- your unused deduction room at the end of the preceding year
Plus
- The lesser of the two following items:
- 18% of your earned income in the previous year
- the annual RRSP limit (for 2020, the annual limit is $27,230)
- That exceeds one of the following items:
Plus
Minus
Based on the information above, you will need your unused deduction room at the end of 2020 and plus 18% of your earned income in 2020 because it is lesser than the annual RRSP contribution limit in 2020. After calculating your RRSP deduction limit for 2020, you will find out the maximum amount you can claim for the RRSP deduction limit in 2020.
For further information, this link below from the CRA website will be useful.
How is your RRSP deduction limit determined?
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