Reductions from gross income for such items as registered retirement account contributions and RESP payments will result in

Question

Quizplus · Accepted Answer

Reductions from gross income for items such as registered retirement account contributions and RESP payments will result in net income, which is the amount left after all deductions have been made. It is the amount that is subject to tax. Choice A (business income) is not correct because deductions from gross income do not necessarily relate to business income. Choice B (taxable income) is not correct because the reductions from gross income will reduce taxable income but do not result in taxable income. Choice C (earned income) is not correct because reductions from gross income may not impact earned income. Choice E (total exclusions) is not correct because reductions from gross income are not exclusions.

Reductions from Gross Income for Such Items as Registered Retirement