2. Henrik Henrickson is a long-standing client of Rechamel and Beaufort. This morning, the tax partner asked you to start working on Henrickson's taxes for the year. You have been provided the following information: The total of all positive sources of income is $76,350 Henrickson, moved from Alberta to Saskatchewan in June, 2021. He chose to move to Regina, SK so that he could be close to his parents, who would also be looking after his kids (ages 6 and 9). Henrickson compensated his parents $3,000 for looking after his kids during the year. His moving expenses comprised the following: In early May, he flew to Saskatchewan to find a new home. It took him three days to locate a suitable house and sign the purchase agreement. When that was completed, he returned home to Alberta. His expenses for the trip were: Air fare $675 Car rental $210 Hotel 3 days @ $90 per night) $270 Food 3 days (@ $30 per day) $90 o Real estate commission for selling his old home $9,000 o Legal fees for old home $1,500 o Unpaid property taxes on old home up to date of sale $1,200 o Legal fees for new home $1,750 Land transfer tax on new home $1,100 o On June 15, Henrickson, and his family left and drove with all of their personal belongings to Regina, SK. In total, they drove 1,248 km. Their expenses for the three days of travel were: Gas $415 Hotel 3 days @ $100 per night) $300 Food 3 days (@ $60 per day) $180 Moving company invoice (for packing and transporting furniture) $4,500 The children also attending after-school care from 3:30pm to 5:30pm, which Henrickson paid $7,500 total (for both children). REQUIRED: (i) Calculate the deduction for moving expenses, if any, for the current year, and if there is a carry forward, indicate the amount. (ii) Calculate the childcare deduction (iii) Calculate Net Income for Tax Purposes HST for Ontario is 13% GST is 5% for: Alberta British Columbia Manitoba Northwest Territories Nunavut Quebec Saskatchewan Yukon HST is 15% for: * New Brunswick * Newfoundland and Labrador Nova Scotia * Prince Edward Island HST is 13% for Ontario Federal Tax for Individuals: Taxable income in Excess of $0 49,020 98,040 151,978 216,511 Federal Tax $0 7,353 17,402 31,426 50,141 Marginal Rate or Excess 15% 20.5% 26.0% 29.0% 33.0% Basic Personal Amount: Income of $151,978 or less: $13,808 Income between $151,978 and $216,511: $13,808 - ($1,387)((net income - 151,978)/64,533) Income of $216,511 or higher: $12,421 Pension: 15% of up to $2,000 of eligible pension income for a maximum credit of $300. This credit is available to be transferred to a spouse or common-law partner. Canada Pension Plan: The maximum credit base for all individuals is $2,876. This produces a maximum tax credit of $431. The actual maximum CPP contributions for those individuals with pensionable earnings of $61,600 or more is $3,166. The difference of $290 is treated as a deduction under ITA 60(e.1) and reduces net income. Employment Insurance: With respect to El premiums, the amount that will be withheld from employee earnings amounts to 1.58% of the first $56,300 in gross wages, with a maximum annual contribution of $890. The employer is assessed 1.4 times this amount, a maximum of $1,245. This represents an effective rate for the employer of 2.21%. 2. Henrik Henrickson is a long-standing client of Rechamel and Beaufort. This morning, the tax partner asked you to start working on Henrickson's taxes for the year. You have been provided the following information: The total of all positive sources of income is $76,350 Henrickson, moved from Alberta to Saskatchewan in June, 2021. He chose to move to Regina, SK so that he could be close to his parents, who would also be looking after his kids (ages 6 and 9). Henrickson compensated his parents $3,000 for looking after his kids during the year. His moving expenses comprised the following: In early May, he flew to Saskatchewan to find a new home. It took him three days to locate a suitable house and sign the purchase agreement. When that was completed, he returned home to Alberta. His expenses for the trip were: Air fare $675 Car rental $210 Hotel 3 days @ $90 per night) $270 Food 3 days (@ $30 per day) $90 o Real estate commission for selling his old home $9,000 o Legal fees for old home $1,500 o Unpaid property taxes on old home up to date of sale $1,200 o Legal fees for new home $1,750 Land transfer tax on new home $1,100 o On June 15, Henrickson, and his family left and drove with all of their personal belongings to Regina, SK. In total, they drove 1,248 km. Their expenses for the three days of travel were: Gas $415 Hotel 3 days @ $100 per night) $300 Food 3 days (@ $60 per day) $180 Moving company invoice (for packing and transporting furniture) $4,500 The children also attending after-school care from 3:30pm to 5:30pm, which Henrickson paid $7,500 total (for both children). REQUIRED: (i) Calculate the deduction for moving expenses, if any, for the current year, and if there is a carry forward, indicate the amount. (ii) Calculate the childcare deduction (iii) Calculate Net Income for Tax Purposes HST for Ontario is 13% GST is 5% for: Alberta British Columbia Manitoba Northwest Territories Nunavut Quebec Saskatchewan Yukon HST is 15% for: * New Brunswick * Newfoundland and Labrador Nova Scotia * Prince Edward Island HST is 13% for Ontario Federal Tax for Individuals: Taxable income in Excess of $0 49,020 98,040 151,978 216,511 Federal Tax $0 7,353 17,402 31,426 50,141 Marginal Rate or Excess 15% 20.5% 26.0% 29.0% 33.0% Basic Personal Amount: Income of $151,978 or less: $13,808 Income between $151,978 and $216,511: $13,808 - ($1,387)((net income - 151,978)/64,533) Income of $216,511 or higher: $12,421 Pension: 15% of up to $2,000 of eligible pension income for a maximum credit of $300. This credit is available to be transferred to a spouse or common-law partner. Canada Pension Plan: The maximum credit base for all individuals is $2,876. This produces a maximum tax credit of $431. The actual maximum CPP contributions for those individuals with pensionable earnings of $61,600 or more is $3,166. The difference of $290 is treated as a deduction under ITA 60(e.1) and reduces net income. Employment Insurance: With respect to El premiums, the amount that will be withheld from employee earnings amounts to 1.58% of the first $56,300 in gross wages, with a maximum annual contribution of $890. The employer is assessed 1.4 times this amount, a maximum of $1,245. This represents an effective rate for the employer of 2.21%