Contribute to a RRSP
There are no two ways about it! A RRSP remains the most direct way to save on taxes… year after year. RRSP allow you to make savings during your working years to maintain your quality of life when you retire. By making individual and voluntary contributions directly into your account, your savings are tax-free. You can make one big contribution per year or provide weekly or monthly installments that coincide with your payroll.
Better yet, invest your refund in a new RRSP as soon as you receive it. You will be glad you did next spring!
You should consult your annual Notice of Assessment from the federal government to find your maximum contribution allowed based on your income.