ADMS 3520 Chapter 3: NotesCh3.pdf
Document Summary
The exemption reduces taxable income (not employment income) Exemption is available for 5 years provided the loan to employee is still outstanding. New location must be 40km closer to the new work location. Federal tax rates increase at higher levels of taxable income. Maximum tax rate with ontario taxes = 46. 41% Amounts eligible for tax credits are totaled and the tax credit is calculated by being multiplied by 15. Tax credits reduce taxes payable in calculating taxes owing. Everyone is eligible for this tax credit. Can earn income up to this amount without being subject to personal income tax. If married, a taxpayer is allowed a tax credit for a dependent spouse or partner. Tax credit is reduced by income of spouse or partner. If a single parent supports a minor child, the parent is eligible for a tax credit, which is similar to the spouse or common law partner tax credit.