How To Use The RRSP To Reduce Your Taxes (Defer or Claim RRSP Deductions When Filing Tax Return)

When you contribute money to certain tax-advantaged investment accounts in Canada - like the RRSP and the FHSA - you have the ability to reduce your taxable income by the same amount that you contribute.

But, you don't have to reduce your taxable income in the same year that you contribute money - you can either claim the full amount, claim a partial amount, or defer the entire amount into the future...

...so, when should you choose to claim vs defer your contributions?

That's exactly what we cover in this video (using our personal experience as an example). Let's dive in!

0:00 The RRSP & FHSA reduce your taxable income
1:34 You have three options for your contributions
3:00 How does Canada’s tax system work?
5:03 Deduction Now Example
6:03 Carry Forward Example
8:27 Scenario 1: $100k Income
10:57 Scenario 2: Partial Deduction
13:08 How to defer or claim on your tax return

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.