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If you are referring to parents contributing to their own RRSP`s, I have a shocking answer for you: Osap calculates parents net income by deducting from gross income the CPP, UI and taxes paid. By contributing too RRSP, the parents reduce their tax payable. This results in higher income for OSAP purposes, and reduces your osap entitlement. It can also reduce the non-repayable grants associated with OSAP. Typically the claw-back could be 15-30% of the tax saving due to the RRSPcontribution...
For RRSP of the student:
a) Single dependent/independent and sole support students
Step 1: Assess 100% of the reported value of all RRSPs declared in Item 660 which are registered to the student. Do not include the value of RRSPs mandatorily "locked" in under the Canada Pension Plan Act. (See Definitions and Context)
Step 2: Deduct from the amount in Step 1 $2,000 for each 12 month period that the student has been out of secondary school (Item 175 of the OSAP application)
b) Married students and Students in Common law/Same-sex Relationships
(i) One spouse is a student
Step 1: Assess 100% of the reported value of all RRSPs declared in Item 660. Do not include the value of RRSPs mandatorily "locked" in under the Canada Pension Plan Act. (See Definitions and Context)
Step 2: Deduct from the amount in Step 1 $2,000 for each 12 month period the student has been out of secondary school (Item 175) and deduct $2,000 for each 12 month period the spouse has been out of secondary school (Item 945).
Multiply the result by 50% to get the assessed RRSP contribution: This is the amount that will be deducted from your financial need for OSAP calculations.
It seems that it would be wise to realy withdraw the money and use it, otherwise you loose part of OSAP every year, because you still have RRSP...
What else can I help you with?
Can a criminal receive OSAP in Canada?
Criminal records are not taken into consideration. If you are currently in jail, then you cannot apply for an OSAP loan, OSAP pretty much presumes you can leave and go to classes. However criminal records will not bar you from receiving them, as long as the crime did not involve defrauding the OSAP program.
How would one go about contributing to a RRSP?
The amount you can contribute depends on your RRSP deduction limit. You can find your deduction limit by looking at your 2011 Tax Return. Your RRSP deduction limit is the amount of RRSP contributions that you can deduct on your tax return for a given year.
What does the OSAP gov on Ca mean?
OSAP gov on Ca means Ontario Student Assistance Program. OSAP supplies students with information about post-secondary school funding options and online applications.
What is the difference between a RRSP and a RRIF?
an rrsp withdrawals do NOT qualify as a pension income. the RRIF withdrawals do qualify as pension income.
What is a self-directed RRSP?
check out http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/cntrbtng/slfdrctd-eng.html
What is a self directed RRSP?
check out http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/cntrbtng/slfdrctd-eng.html
Is Osap a regulatory or advisory agency?
Regulatory
In a divorce in Ontario Canada is his and her RRSP's part of divorce settlement or is it untouchable even if one is much higher than the other?
No it is not untouchable. In order to quantify the RRSP, one has to obtain the services of a profeesional. Also it depends on the RRSP and how the contributions are made. Rgds
What does OSAP stand for?
Ontario Student Assistance Program
Hi all I was wondering if financing a car will affect my ability to get a student loan from osap If it helps the car is valued at 20k?
Financing a car can impact your ability to get a student loan from OSAP, but it largely depends on your overall financial situation. Lenders consider your debt-to-income ratio, so if your car loan significantly affects your monthly expenses, it may influence your eligibility. However, OSAP primarily assesses your income and financial need, so as long as you meet their criteria, the car financing alone shouldn't disqualify you. It's best to review your complete financial picture and consult with OSAP directly for tailored advice.
Where can one learn about student loan programs?
One may learn about student loan programs from a variety of different places. OSAP is a student loan program for residents of Ontario. Information for OSAP can be found on the OSAP website. Additionally, one could visit their bank for more information.
What is osap?
"OSAP" is a commonly used abbreviation in the military, though less known in civilian circles. It stands for "on standing active patrol," and is used to describe watch duties for ships in port.
