Which of the following best summarizes the correct process?
A)Calculate total income,subtract tax credits and deductions,determine refund or balance owing.
B)Add all deductions and subtract the credits from total income,determine refund or balance owing.
C)Calculate total income,deduct RRSP contribution,apply tax credits and deductions,determine refund or balance owing.
D)Calculate total income,subtract deductions,calculate taxable income,apply tax credits,determine refund or balance owing.

Question

Quizplus · Accepted Answer

The correct process involves calculating total income, subtracting deductions (such as contributions to an RRSP), calculating taxable income, and then applying tax credits before determining whether there is a refund or balance owing. Option D describes this process accurately.

Which of the Following Best Summarizes the Correct Process