This weekend I had the fun task of doing a preliminary draft of my income tax return. It’s preliminary because I don’t have all my tax receipts, including the most important one, which is my T4. As such, some of the numbers I plugged in are just guesses or educated ones at least.
I’ve been doing these preliminary returns for a few years now because I need to find out if I’m gonna owe the government more money (and how much) or if I’m gonna get a refund. If the tax program tells me I owe money, then I try to figure out how much more of an RRSP contribution I need to make to roughly break even.
This year, if the calculations are to be believed and if I do nothing else, I am still owing the government about $300. If I then contribute another $750 to an RRSP, I will wind up with a refund of less than $20.
I feel fortunate that I have the contribution room and the actual money to dump another $750 to an RRSP. I have until the end of February to get this done, so I have plenty of time.