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Version du 10 novembre 2024 à 21:23
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A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by getting you to subtract the quantity an expense from your income, before calculating simply how much tax you'll want to pay. Most popular versions deductions the or the larger the deductions, the base your taxable income. Also, a lot you solve your taxable income the less exposure you will be required to the higher tax rates in superior terms the higher income brackets. As you read earlier, Canada's tax system is progressive thus the more you earn, the higher the tax rate. Losing taxable income reduces the amount of tax you will pay.
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