RRSP and TFSA Contribution Room for 2022
There have been dozens of posts today on people either not understanding TFSA and RRSP contribution room. So below is short items for each and you can also find this basic information on the CRA website by typing into any search engine "CRA TFSA" or "CRA RRSP" or read the wiki near the top of the page.
RRSP: On your 2020 Notice of Assessment, there is a RRSP contribution amount. That is the amount you could contribute to your RRSP in 2021. You have until March 1, 2022 to contribute to apply the tax deduction for the 2021 tax year if you have't contributed. For the 2022 tax year, the official number will be on your 2021 Notice of Assessment after you file your 2021 tax return. If you think you can calculate your RRSP contribution room for 2022, you can contribute starting Jan 1, 2022, but be aware, you have to report the contribution on your 2021 tax return, just don't report the tax deduction till next year's tax return.
TFSA: The contribution number on your CRA MyAccount is not accurate as it is not updated in real time. If you are an immigrant, international student, non-resident of any period of time since 2009, chances are it's incorrect. As recommended by CRA, you should track the contributions and withdrawals against each year's limit that you are eligible for (for those unaware, eligibility is 18 or older, valid SIN and a tax resident of Canada) by using a simple spreadsheet. To see each year's contribution room, refer to the link below, click on Contributions, Withdrawals and Transfers and then click on Contributions.
submitted by /u/FelixYYZ
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