Explain difference between tax deductions and tax credits

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Reference no: EM133971603

Problem

A taxpayer with medical expenses that exceed 3% of their net income, and an RRSP contribution that is below their limit, is surprised to owe tax after entering all their slips. Get the instant assignment help. They are unclear on why their RRSP and medical expenses haven't significantly reduced their tax payable. Compose an email to the taxpayer explaining the difference between tax deductions and tax credits, providing examples of each and detailing their respective impacts on the final tax liability.

Reference no: EM133971603

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