Financial Planning Skills Test, Grade 3 | Tax Planning Questions

Salary and bonuses received from an employer fall under employment income.

Income from letting real estate such as land and buildings is real estate income.

An income deduction is subtracted from the amount of income, reducing taxable income.

A tax credit is deducted from the tax after the rate has been applied to taxable income.

Calculate the qualifying medical costs and any amounts reimbursed, and claim the deduction, as a rule, through a tax return.

The payer of salary and similar amounts deducts the prescribed income tax and remits it to the state.

The employer applies the various deductions and settles the amount withheld from an employee's salary.

To enjoy the benefits of a blue return, an application and the keeping and retention of certain books are required.

Under aggregate taxation the applicable income is totalled and the rates applied after income deductions.

Estimate early and hold the money separately, to avoid a shortfall when filing and paying.