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What is a Spousal RRSP Contribution?

Definition of a Spousal RRSP Contribution: A situation in which a person makes a contribution to his or her spouse’s RRSP. The contributor uses his/her contribution room, and reports the contribution on his/her tax return, thus saving income tax at his/her rate. What is the advantage of a Spousal RRSP Contribution? A couple can maximize [...]

What is a Marginal Tax Rate?

Marginal Tax Rate: The tax rate that applies to your highest-taxed dollar. Used to calculate the tax impact of additional earnings. The Marginal Tax Rate relates to the fact that in a progressive tax system like Canada’s, the more you earn the harder your income is taxed. While some people think this means that once [...]

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