If I didn't pay enough taxes, can I contribute to RRSP to offset what I owe?

[julia]

I earned almost exactly 50k in 2019. Please confirm that I am understanding taxes correctly before I proceed with the main question:
-Anything 47630$ and below is taxed at 15%
-Anything above that is taxed at 20%
-Therefore I'd have 2370$ that is taxed at 20%

If my understanding of that is correct, lets proceed...

Therefore based on my 50k, I should be taxed 7618.5$ (7144.50 + 474).
I was only taxed about 6000$ (I had several jobs, some making below the 11k tax exempt threshold).

Therefore, I will owe just below 2k.

MAIN question:
If I contribute my max amount of 18% of my income (9k) to my RRSP which will bring my income down to 41k, does this mean that the 9k I contribute to RRSP will be tax exempt and I won't have to owe that ~2k? ... I'll only owe like 150$? (Because 41k x 15% tax =  6150)?

Thanks for your help!

[K-ice]

To double check the numbers you would need to share your province.

But it looks like you have the gist of it.

Your max amount may not be the full 18% if some pension was taken off by your employers. (With a bunch of part time jobs that’s not likely but you should check.)

I’ll add that making $50K you might want to consider maxing your TFSA before your RRSP.

Also, if you expect to make considerably more soon you might want to delay RRSP contributions until you make over $80K. Think of the resident becoming a doctor soon.

[FIRE Artist]

Don’t forget your personal exemption amount, likely you will end up in the 15% bracket for all your income.

The amount you can put into your RRSP is based on previous years income, not this years, so look at you last year’s notice of assessment to find our your RRSP contribution limit. If you haven’t contributed before but have worked, it should be a good amount.

And don’t forget you also owe provincial taxes, the have different personal ex4mption amount, but RRSP also reduces taxes owed here too.

[julia]

Thanks guys! Yep my TFSA is maxed out and I have a lot in a taxable account so I figured Ill max out my RRSP too.

[Dogastrophe]

Here is a calculator that I have found useful.  It accounts for the personal exemptions

https://www.eytaxcalculators.com/en/2019-personal-tax-calculator.html

[FIRE Artist]

Ha! just read the post I made from my iPhone yesterday.  Holy typos Batman.

[RetiredAt63]

Easiest might be to download one of the free tax software programs, figure out what you paid in deductions for things like work pensions, EI, etc., all the things that affect your taxes, and then run the software.  Play with numbers to see how much various RRSP contributions (within your limit) would affect things.  You need to do this soon, RRSP contributions for 2019 have to be done by February 28.

[Dogastrophe]

Easiest might be to download one of the free tax software programs, figure out what you paid in deductions for things like work pensions, EI, etc., all the things that affect your taxes, and then run the software.  Play with numbers to see how much various RRSP contributions (within your limit) would affect things.  You need to do this soon, RRSP contributions for 2019 have to be done by February 28 March 2nd.

Just a slight edit to the 2019 RRSP tax year deadline

[RetiredAt63]

Easiest might be to download one of the free tax software programs, figure out what you paid in deductions for things like work pensions, EI, etc., all the things that affect your taxes, and then run the software.  Play with numbers to see how much various RRSP contributions (within your limit) would affect things.  You need to do this soon, RRSP contributions for 2019 have to be done by February 28 March 2nd.

Just a slight edit to the 2019 RRSP tax year deadline

How nice of them.     /s

[Mighty Eyebrows]

Easiest might be to download one of the free tax software programs, figure out what you paid in deductions for things like work pensions, EI, etc., all the things that affect your taxes, and then run the software.  Play with numbers to see how much various RRSP contributions (within your limit) would affect things.

Exactly this. As a badass mustachian that takes control of your own life, you get to use all the free tools at your disposal. For Canadians that includes taxtips.ca and studiotax:

https://www.taxtips.ca/calculators/canadian-tax/canadian-tax-calculator.htm

https://www.studiotax.com/en/?page=1

Self-education is a powerful weapon.