Youngsters who earn casual income can benefit from filing tax returns. Although part-time summer income might not be enough to generate taxes, it qualifies as earned income for RRSP purposes. Reporting this income builds contribution catch-up room for when the individual works full-time.
As odd as this may sound, youngsters who earn casual income might benefit from filing tax returns. Although the income from a paper route or part-time summer work might not be enough to generate taxes, it does qualify as earned income for RRSP purposes. Reporting this income annually builds RRSP contribution catch-up room that will be valuable when the individual becomes a full-time worker.