Net income and why it matters

Net income (line 23600) does more than set your tax. It is used to calculate many benefits:

• The Canada Child Benefit
• The Canada Groceries and Essentials Benefit
• The OAS recovery tax
• Age amount and medical expense threshold

Deductions such as RRSP contributions lower net income. Credits do not. An RRSP contribution can sometimes save more than your tax rate suggests, because it can also increase benefits.