Question
TAX DEDUCTION vs TAX CREDIT: IN CANADA A client has come to you and is trying to decide between two things: 1) contribute money to
TAX DEDUCTION vs TAX CREDIT: IN CANADA
A client has come to you and is trying to decide between two things:
1) contribute money to her RRSP or 2) donate to her favorite charity "Save the Marmots".
This client has $10,000 that she would either like to contribute or donate.She is unsure of the difference between a "tax deduction" and a "tax credit"--and doesn't know which is which of her choices.Tax, of course, will be the deciding factor in her decision.For discussion purposes, assume her income is $100,000 from employment, she is single with no dependents and has RSP Room of $40,000 available.
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