Exam 1: Tools for Financial Planning - Using Tax Concepts for Planning

The basic personal amount is a non-refundable tax credit that can reduce tax payable to zero for people with income under $11 000.

Under which of the following conditions must you file a personal income tax return?

If you are working as a Certified Financial Planner and you pay $500 to your association every year for membership,you can deduct $500 on your personal tax return as

The spousal/common law tax credit is available to those supporting a spouse who had earnings under $11 635 in 2017.

Describe and compare tax planning and tax avoidance.Use the web to research and give an example of each.

Reginald is thinking about asking his employer to defer a $5000 bonus to next year's income because he would have to pay $2050 in tax if he received it this year.What should he do?

Jerome is recently divorced and has two children that live with his ex-wife.What deductions should Jerome claim on his tax return?

Tuition and charitable donations can be carried forward to reduce taxes in future years.

By what date must self-employed individuals file their income tax returns?

Deductions and tax credits both benefit high-income individuals more than moderate earners.

Tax planning is best done at the same time you file your tax return.

Which of the following income is taxed at the lowest rate?

Which of the following items is affected by the taxpayer's income level?

Canada's taxation rules are called "progressive." This means

Your earnings for last year were $42 000.How much of an RRSP contribution can you make this year (if you have no other RRSP room)?

Which of the following is not a feature of a registered education savings plan (RESP)?

Tax avoidance may be subject to both criminal and civil prosecution.

Which of the following best summarizes the correct process?

The T4 slip provided by your employer shows all your

Tuition,pension,and age amount credits can be transferred to your spouse if you have no tax to pay.