• Amanda and Bruce are married with two children: Hans (3 years old) and Hanna (13 years old). They live in Walton, Nova Scotia.
• Bruce earned employment income. He had a gross salary of $70,000. Reductions from his gross salary were taken for a RPP of $3,000, maximum amounts for EI and CPP, union dues of $1,200, and income taxes.
• Amandas only source of income is net rental income of $120,000.
• Amandas RRSP deduction room is $28,000 for 2020. Her undeducted contributions at December 31, 2019 were $10,000. She contributed $12,000 in RRSP contributions in 2020.
• Bruce has never made any contributions to an RRSP.
• Amanda paid for the child care expenses ($10,000 for Hans and $2,000 for Hanna).
• Amanda donated $5,000 to registered charities while Bruce donated $300.

REQUIRED: Ensure your answer takes maximum advantage of effective tax planning to minimize family taxes. For each of Amanda and Bruce calculate the following for 2020:

1. net income for tax purposes, (use the Step1, Step2, Step3, & Step 4 approach),
2. taxable income,
3. federal income taxes