Common questions answered, and a link to free online tax tools EDMONTON, Feb. 25 /CNW/ - The post office and couriers will be busy for the next few days as many of the six million Canadians who contribute to their RRSPs scramble to meet the February 29 deadline. The tax team at Intuit Canada is on the front line when it comes to RRSP questions, and noted these five points worth sharing before the deadline.Home buyers need an RRSP foundation with their Home Buyers Plan - Many Canadians dip into their RRSP savings (up to $20,000) to fund down payments. The Government's Home Buyers' Plan (HBP) is a great way to get a leg up, but repayments can be confusing. - When withdrawing money from an RRSP for the HBP, you use money that has not been taxed. To avoid paying tax, you must repay the HBP by purchasing RRSPs over a 15-year period, or the government will consider it income and therefore tax you on it. Typically annual payments are the HBP amount divided by 15. - You must specify whether RRSP contributions are for your HBP. QuickTax will automatically determine your HBP repayment and ask you whether you wish to make a HBP payment. - HBP contributions do not count as part of the RRSP contribution for that year, so plan accordingly. Carry forward RRSP contributions - Most people know they can carry forward RRSP contribution space, but RRSP contributions made this year can cut your taxes next season. Contributions to your own or your spouse/common-law partner's RRSP plan need not be immediately deducted. If your income in a tax year is low, it may be better to carry forward the RRSP contributions and claim them in a future year when your income is higher. - QuickTax has an automated Carry Forward for returning users, which brings forward information from the previous year from both QuickTax and TAXWIZ software, in addition to any tax deductions not taken in the previous year. This saves time and effort, and reduces the chance of typing errors. Take advantage of uneven incomes - Often couples will have a significant difference in their incomes. This gulf can be beneficial to both if they plan RRSP contributions strategically. - The spouse or common-law partner with the higher income should consider making the RRSP contributions, as he or she will benefit the most from the allowable deduction. This deduction is calculated according to the taxpayer's tax rate, and the higher the tax rate, the more beneficial the deduction. - Also, consider making contributions to your spouse/common-law partner's RRSP if he or she has the lower income. When you withdraw funds from an RRSP at retirement, this income will be taxable to your spouse/common-law partner (payee), likely at a lower tax rate. - QuickTax can assist couples to determine how much each should contribute to an RRSP through its RRSP optimizer tool, which is offered in all QuickTax products. More isn't always better - Most Canadians want to build their nest egg, but RRSPs have their limits, so think carefully before over contributing, or you could be subject to penalties. - If you have over contributed, a tax of one per cent, per month may apply. However, if over contributions resulted from mandatory group RRSP contributions or from contributions that you made before February 27, 1995, you may not have to pay this one per cent tax on all your unused contributions. - If you have an over contribution, obtain Form T1-OVP, Individual Income Tax Return for RRSP Excess Contributions, to calculate the excess contributions and the tax payable. QuickTax automatically highlights over contribution issues. Everyone likes an allowance - Retiring allowances, money paid under certain conditions to employees when they retire, let you contribute amounts to your RRSP in addition to the regular RRSP room determination based upon earned income. - If you are presently employed by the same company that you have worked for since and prior to 1996, you may be eligible for the benefits of a retiring allowance. - Should you collect a retiring allowance, be sure to request an RRSP contribution receipt for it.More RRSP Advice? Look online! There are a number of free RRSP calculators and tax tools available to use online that help Canadians confirm their RRSP strategies. Intuit Canada offers a broad range of tax preparation software that all include the free RRSP Optimizer, which analyzes tax situations and identifies money-saving strategies. The built-in slider-bar instantly reveals the effect of different RRSP contributions on net income, average tax rate, taxes owed or refund due. Intuit Canada's QuickTax Resource Centre is home to a range of free planning tools, net worth calculators, a Q&A with a tax expert, and other valuable information, all available at www.quicktax.ca/taxtools. About the RRSP Optimizer The RRSP Optimizer is a component of QuickTax. Available at www.quicktax.ca, users can try the RRSP Optimizer for free by using QuickTax online edition and pay only when they're ready to file. The RRSP Optimizer empowers users to make smarter RRSP decisions. It analyzes each user's individual tax situations and identifies money-saving strategies. The built-in slider-bar instantly reveals the effect of different RRSP contributions on your net income, average tax rate, taxes owed or refund due - so you can fine tune your strategy. About Intuit Canada Intuit Canada Limited is a leading provider of business, financial and tax management solutions for small- and mid-sized businesses, consumers and accounting professionals. Key products and services include Quicken(R), QuickBooks(R), QuickBooks(R) Succès PME, QuickTax, and ImpôtRapide(MC). Intuit Canada Limited directly, or through its partners, offers ProFile(R), a professional tax preparation software suite, the QuickBooks ProAdvisor Program, the Intuit Developer Network for professional users and developers and other products and services. Intuit Canada Limited and its partners enable individuals, small businesses, retailers and financial professionals to better manage their financial lives and businesses. Visit www.intuit.ca and www.accountant.intuit.ca for additional product information. Intuit Canada Limited is headquartered in Edmonton and has employees located in Calgary, Toronto, Montreal and Ottawa. Intuit Canada Limited is a subsidiary of Intuit Inc., and is listed on the Nasdaq stock market under the symbol INTU. QuickTax is the registered mark of LexisNexis Canada Inc., used by Intuit Canada under license.