Dwayne Brooks is self employed and, because of the high level of his income, is required to make a 2020 CPP contribution of $5,796 [(2)($2,898)]. How will this affect his 2020 Net Income For Tax Purposes and his 2020 Taxable Income?

Question

Quizplus · Accepted Answer

The CPP contribution affects the Net Income For Tax Purposes and Taxable Income through a non-refundable tax credit, not a direct deduction. The amount of $3,064 likely represents the tax credit calculated from the CPP contribution, which reduces the tax payable but does not directly reduce the income figures.

Dwayne Brooks Is Self Employed And, Because of the High