Attention begins.
The effect of deductions depends on whether they are subtracted from your income or taxes.
- The credit for household expenses, the credit due to child maintenance obligation and the effect of income spreading, for example, are subtracted directly from your taxes. In other words, they reduce the amount of tax you must pay.
- Travel expenses and expenses for the production of income, on the other hand, are subtracted from your income before the calculation of tax. In other words, they reduce the amount of income subject to tax, which indirectly reduces the total amount of tax.
Deductions made directly from tax (tax credits) have a greater impact than deductions made from income.