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 would reduce the amount of taxable income. Contributions to an RESP would not directly reduce taxable income, but may result in a tax credit. Charitable donations may also result in a tax credit, but do not reduce taxable income directly. Choice C includes the correct options of i and iv.

Shelly Is Seeking Your Advice on How She Can Claim