Which of the following items is NOT included in Fiona's earned income for RRSP calculations?

In determining what counts as earned income for Registered Retirement Savings Plan (RRSP) contributions, it is crucial to understand the definitions surrounding earned income. Earned income typically includes salaries, wages, bonuses, and some forms of self-employment income.

When analyzing the choices given, Fiona's salary of $10,000 and her $5,000 in business income are both forms of earned income. The distinction arises with the rental income and dividends. Rental income is generally considered investment income rather than earned income, and dividends are similarly categorized as investment income.

Thus, the item that does not qualify as earned income for RRSP contribution calculations is indeed the $12,000 in dividends. This is because dividends do not represent direct compensation from employment or self-employment, but rather a return on investment in stocks or mutual funds. Therefore, while business income and salary contribute to her earned income, the dividends do not count toward the RRSP limits.

Recognizing this categorization is essential for accurate financial planning and understanding how to maximize retirement savings through RRSP contributions.