Tax treatment
is "not tax deductible" and "taxable" the same thing?
is "tax deductible" and "not taxable" the same thing?
can you please explain the tax treatment for the following:
individual contribution to provincial health insurance premiums
employer contribution to provincial health insurance premiums
individual contribution to private health insurance premiums
employer contribution to private health insurance premiums
Thank you
Comments
No,
Tax deduction of $50: NI - $50
Taxable amount of $50: NI + $50
Not tax deductible means you can't subtract the item from your taxable income whereas not taxable means it doesn't get added to your taxable income.
a) individual contribution to provincial health insurance premiums - Not Tax Deductible
b) employer contribution to provincial health insurance premiums - Taxable Income for
employee
c) individual contribution to private health insurance premiums - Tax Deductible
d) employer contribution to private health insurance premiums - Not Taxable Income
for employee
Is tax credit same as tax deductible? Thanks!
No it's not.
Example: Your taxable income this year is 100K and you are taxed 20% or 20K.