Final answer:
The correct statement is that earned income for childcare purposes includes gross employment income. RRSP earned income does not include passive income like dividends or interest, and earned income for childcare purposes can be reduced by net business losses.
Step-by-step explanation:
The true statement among the options provided is b. Earned income for childcare purposes includes gross employment income. Earned income for childcare purposes generally refers to the income that parents or guardians earn from employment or self-employment, which is used to determine the amount of childcare expenses that can be claimed as a tax credit. Gross employment income is the total income before deductions that an individual earns from their job, which is considered earned income for the purposes of calculating allowable childcare expenses.
Earned income for RRSP purposes is a different concept and does not include passive income such as interest and dividend income. Instead, it encompasses income from employment, self-employment, certain types of rental income, and other sources that qualify as earned for RRSP contribution room purposes. Moreover, earned income for childcare purposes is not necessarily equal to earned income for RASP (Registered Education Savings Plan) purposes, as different rules apply to contributions and calculations for education savings plans.
Lastly, statement d. Earned income for childcare purposes is reduced by any net business losses, is accurate in that net business losses can be subtracted from gross earned income, thereby reducing the amount of earned income considered for childcare purposes.