Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. of the following statements about tax credits, whi

Of the following statements about tax credits, which one is NOT correct? They reduce...

80.2K

Verified Solution

Question

Accounting

  1. Of the following statements about tax credits, which one is NOT correct?
    1. They reduce tax by the same amount, without regard to the individuals marginal tax rate.
    2. Any unused charitable donation tax credit can be carried forward for 5 years.
    3. The pension income tax credit is not indexed for inflation.
    4. Tax credits are deducted in the determination of Taxable Income.

  1. Johann Bach is 54 years old and his spouse, Maria is 67. Maria qualifies for the disability tax credit. Johann has 2019 Net Income For Tax Purposes of $109,000, while Maria has 2019 Net Income For Tax Purposes of $6,200. Johanns income is all derived from his investments. What is the maximum amount of tax credits that Johann can claim for 2019?
    1. $3,025
    2. $3,953
    3. $5,412
    4. $3,815

  1. Which of the following statements is NOT correct with respect to an individual who qualifies for the eligible dependant tax credit? The individual must be:
    1. related by blood, marriage, adoption, or common-law relationship.
    2. under 18 at some time during the year.
    3. residing in Canada unless they are a child of the taxpayer.
    4. living with the taxpayer in a self-contained domestic establishment.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students