Question

The CRA allows union dues to be treated as before-tax deduction unless the amount:

a) Exceeds $1,000 annually
b) Exceeds 6% of gross income
c) Exceeds 10% of gross income
d) Is less than $500 annually

Answer 1

The CRA allows union dues to be treated as a before-tax deduction unless they exceed 10% of gross income.

Step-by-step explanation:

The CRA (Canada Revenue Agency) allows union dues to be treated as a before-tax deduction. However, there are certain conditions to be met for this deduction. The correct answer is option c) Exceeds 10% of gross income.

The Canada Revenue Agency (CRA) allows union dues to be treated as a before-tax deduction, meaning individuals can deduct these dues from their income before calculating their taxable income. However, there aracertain conditions and limits on this deduction.