knowledge topics
Foundations of Tax Deductions and Credits
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define a tax deduction.
- Explain the purpose of a tax deduction.
- Identify when claiming a deduction may be beneficial.
- Define a tax credit.
- Define the types of tax credits.
- Non-refundable
- Refundable
- Explain the purpose of each type of tax credit.
- Identify when claiming a tax credit may be beneficial.
- Explain the impact on taxes payable.
- Of a tax deduction
- Of a tax deduction as income varies
- Of a non-refundable tax credit1 when taxes payable exist
- Of a non-refundable tax credit when taxes payable do not exist
- Of a refundable tax credit when taxes payable exist1
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
previous / Provincial and Territorial Tax Deductions and Credits for Individuals