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Revision as of 17:30, 11 November 2024
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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by you to subtract the amount of an expense from your income, before calculating how much tax you'll want to pay. Modern deductions you've got or the higher the deductions, the less your taxable income. Also, much better you reduce your taxable income the less exposure you is required to the higher tax rates in improved income brackets. As you read earlier, Canada's tax system is progressive as a result the more you earn, the higher the tax rate. Lowering your taxable income lessens the amount of tax you will pay.
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