Quote:
Originally Posted by Ozy_Flame
Is it normal to owe every year? I make just under six digits and I'm contributing 10% of my paycheque to an RRSP every paycheque. Part of my income is variable and I earn it twice a year, and pay full tax on it every paycheque. Why the hell does it seem like I owe every year? This year is no different. Is this normal?
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Rather than contributing what you need to contribute to avoid paying more, what about getting back some of the taxes (maybe tens of thousands of dollars) you've already paid throughout the year?
I think you're looking at this wrong. You're not alone as I'm an advisor and I see this all the time. I try to get my clients to think about it differently.
One client recently said he wants to put $5,000 into his RRSP to avoid paying a fairly small amount but in his tax bracket he's already paid about $23,000. Why is that less important?