Tax Time

March 2, 2009 has come and gone, along with it, the RRSP deadline.

This year, our tax planning has been a lot easier than we anticipated back in February 2008: with my much lower income in 2009 and possibly the future, it made most sense for me to maximize my RRSP contribution. For Daniel, he just want to make sure his net income sits below the next OHIP premium threshold (his net income ended up being about $300 below that dreaded bracket).

Since we both made sizable contribution (mine being considerably larger than his), I filed our taxes last week and is currently waiting for our refund. Between now and then, we're officially cash strapped!

Actually, there was another downside of making a huge RRSP contribution. We have started house hunting and are expecting/hoping to move this summer. (House hunting will be another post, I suppose.) Our RRSP has drained our cash and we have to rely on our current home as a source of down payment, either the proceeds of selling it or refinancing it if we decide to keep it as an investment. Luckily, with the interest rate going down another 0.50% yesterday, our mortgage interest amounts to about $4 a day!