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Note: This writer is not a CPA or tax specialized. This article is for general information purposes, and should not be construed as tax advice. Readers are strongly asked to consult their tax professional regarding their personal tax situation.
A tax deduction, or "write off" as it's sometimes called, reduces your taxable income by you to subtract numerous an expense from your income, before calculating what amount tax leads to pay. Greater deductions anyone could have or the larger the deductions, minimized your taxable income. Also, tougher you trim your taxable income the less exposure you will be required to the higher tax rates in bigger income brackets. As you read earlier, Canada's tax system is progressive indicates you the more you earn, the higher the tax rate. Reducing your taxable income cuts down the amount of tax you will pay.
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