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Revision as of 14:45, 22 September 2024
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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income through getting you to subtract the total amount of an expense from your income, before calculating the amount tax you'll want to pay. Higher deductions have got or the better the deductions, over the your taxable income. Also, a lot you eliminate taxable income the less exposure you will likely need to the higher tax rates in superior terms the higher income mounting brackets. As you read earlier, Canada's tax system is progressive which means the more you earn, the higher the tax rate. Losing taxable income cuts down on amount of tax you'll pay.
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