Adam carries on a business as a sole proprietor.He might be eligible for all of the following federal tax credits except: a. Canada Workers Benefit tax credit. b. El tax credit. c. Canada employment tax credit. d. CPP tax credit.

Question

Adam carries on a business as a sole proprietor.He might be eligible for all of the following federal tax credits except: a. Canada Workers Benefit tax credit. b. El tax credit. c. Canada employment tax credit. d. CPP tax credit.

Answer 1

The correct answer is **c. Canada employment tax credit.**Here's why:* **Canada Workers Benefit (CWB):** This is a refundable tax credit aimed at low-income individuals and families who are working. A sole proprietor with low income could be eligible.* **EI tax credit:** Self-employed individuals can opt into the Employment Insurance (EI) program. If Adam has opted in, he would be eligible for the EI tax credit on his premiums.* **Canada employment tax credit:** This credit is specifically for *employees* with modest incomes and is based on employment income. Since Adam is a sole proprietor and considered self-employed, he would not be eligible for this credit.* **CPP tax credit:** Similar to the EI credit, self-employed individuals pay both the employer and employee portions of CPP contributions. They are then eligible for a tax credit on the employee portion of these contributions.

Question

Adam carries on a business as a sole proprietor.He might be eligible for all of the following federal tax credits except: a. Canada Workers Benefit tax credit. b. El tax credit. c. Canada employment tax credit. d. CPP tax credit.

Solution

Answer