Shelly is seeking your advice on how she can claim various deductions and credits.Which of the following items would reduce the amount of her Taxable Income? i.A net capital loss carried forward from a previous year.ii.A charitable donation.
Iii)Contributions to an RESP.
Iv)Childcare costs paid during the year.

Question

Quizplus · Accepted Answer

A net capital loss carried forward from a previous year and childcare costs paid during the year can reduce the amount of taxable income. Contributions to an RESP and charitable donations are claimed as credits on the tax return, reducing the amount of taxes owed, but they do not directly reduce taxable income. Therefore, option C (i and iv) is the best choice as it includes the two items that directly reduce taxable income.

Shelly Is Seeking Your Advice on How She Can Claim