What income is included in the calculation of my allowable RRSP contributions?

The amount of money you are allowed to contribute to an RRSP, for any given year, is calculated based upon your Earned Income. Canada Revenue Agency (CRA) defines Earned Income as the following.

• Gross salary and wages from employment
• Net income from self-employment or a business in which you were an active partner
• Royalties for a work or invention of which you were the author or inventor
• Net rental income from real property
• Taxable support payments (ie. alimony or separation allowances)
• Net research grants received
• Employee profit sharing plan allocations
• Supplementary unemployment benefits (do not include regular EI benefits)
• Disability benefits received under Canada Pension Plan or Quebec Pension Plan

From the amounts listed above, deduct the following items.

• Current-year losses from self-employment or a business in which you were an active partner
• Current-year rental loss from rental properties
• Deduct support payments paid (ie. alimony, separation allowances)
• Business income from the disposition of eligible capital property in excess of recaptured tax deductions.

The resulting net amount is your Earned Income eligible for calculating your allowable RRSP contributions.