Rachel earns $279,000 per year and has decided to take the entire 2021 year off to travel before considering her option between 3 companies for her next role. Naturally she will still need money during her year off. She has RRSPs, and owns a $765,000 home with no mortgage. How can Rachel reduce her 2020 and 2021 income taxes owing? She can maximize her RRSP contributions to reduce 2020 taxes owing to zero and then use the tax refund in 2021 She can contribute to her TFSA and use funds from there as needed She cannot reduce 2021 income taxes because she will have no income and therefore no taxes owing. She can make a 2020 RRSP deposit and then take money out of her RRSP in 2021