Reference no: EM132727564

Problem 1. With respect to claiming tax credits related to an individual's child, which of the following statements is NOT correct?

A) To claim the eligible dependant credit for a child, the child must be under the age of 18 at some time during the year.
B) The Canada caregiver credit for a child under 18 cannot be claimed if the parent is claiming the eligible dependant credit for that child.
C) An individual cannot claim the eligible dependant credit if they are living with, supporting, or being supported by a spouse.
D) To claim the eligible dependant credit for a child, the child does not have to be a resident of Canada, provided they are living with the taxpayer.

Problem 2. Of the following statements about tax credits, which one is correct?

A) They are deducted from total income and are effectively not subject to tax.
B) They reduce tax by the same amount regardless of a taxpayer's marginal tax rate.
C) They are deducted from Net Income For Tax Purposes and are effectively not subject to tax.
D) Their impact is greater for taxpayers with a higher marginal tax rate.