IFSE - CIFC - Unit 10 UPDATED Questions and CORRECT Answer

IFSE - CIFC - Unit 10 UPDATED
Questions and CORRECT Answers
Payroll taxes are paid to support: - CORRECT ANSWER✔✔- 1. Federal spending on
employment insurance and the CPP benefit programs
2. Provincial spending on worker's compensation benefits for injured workers


Marginal tax rate - CORRECT ANSWER✔✔- - represents the amount of tax an individual
pays on their dollar of income


Average tax rate - CORRECT ANSWER✔✔- - represents how much tax is payable as a
percentage of income


Alberta income tax rate - CORRECT ANSWER✔✔- - flat tax of 10% is applied to all
taxable income


Tax deduction - CORRECT ANSWER✔✔- - lowers taxable income



Tax credit - CORRECT ANSWER✔✔- - lowers tax payable



2 types of tax credits - CORRECT ANSWER✔✔- - refundable
- non-refundable


Refundable tax credit - CORRECT ANSWER✔✔- - a tax credit that can reduce one's
income tax liability to below zero with the excess being refunded to the taxpayer


Non-refundable tax credit - CORRECT ANSWER✔✔- - the portion of the credit that is not
needed to reduce your tax liability will not be paid to you and cannot be carried forward to
reduce your tax liability in the future (except for things like medical expenses, tuition,
charity)


Unused dividend tax credit - CORRECT ANSWER✔✔- - must use it or lose it, cannot be
carried forward