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Please answer ASAP. Will upvote! It is February 2023 and Sandra is looking to maximize her RRSP contribution for a deduction on her 2022 income
Please answer ASAP. Will upvote!
It is February 2023 and Sandra is looking to maximize her RRSP contribution for a deduction on her 2022 income tax return. She has never been part of a Registered Pension Plan. What is the maximum amount that she can contribute to her RRSP and claim on her 2022 personal income tax returns (include carryforward amounts)? She has provided you with the following information: - Salary in 2020$10,000 (part-time employment to help with her tuition when she was 19). - Salary in 2021$80,000. (full-time employment, she was 20). - Salary in 2022$85,000. (full-time employment, she was 21). - Current salary in 2023$90,000. (full-time employment, she is 22). - RRSP contribution made previously and deducted on her 2021 tax return for $2,300 Formula for RRSP contribution limit: 18% of your previous year's earned income less your previous year's pension adjustment to an annual maximum. Registered Retirement Savings Plan (RRSP): Annual Limits Select one: a. $25,300 b. $19,900 C. $27,840 d. $29,200 e. $28,000Step by Step Solution
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