Anthony was supposed to graduate from Concordia in April 2020 but realized he was missing a course to graduate. He took FINA 200 in the summer and started a full-time job on September 1, 2020, at Microsoft. His gross annual salary as a Software Engineer is $75,000. He never filed a tax return and only recently filed his 2020 personal income tax returns oncehe realized the importance in filing and how easy it was. He is now looking to prepare a tax estimate for his 2021 personal income tax returns to avoid surprises when filing his actual 2021 tax returns in April 2022.

a) Given the information below, calculate Anthony’s combined Federal and Quebec taxes payable. See Table A, use 2021 tax rates. Ignore Non-Refundable Tax Credits. (2.5 marks)

Anthony estimates the following for 2021:

• Expects to receive a T4 tax slip from Microsoft reporting his 2021 gross annual salary of $77,250 (received a 3% on January 1, 2021, on his gross annual salary from 2020);• Expects to receive a T5 tax slip with interest received in 2021 of $1,500;• Sold 50 Microsoft shares on September 1, 2021 that he received a year ago as a signing bonus when he startedworking. He received the shares when they were valued at $300/share and recently sold them when they hit$380/share (he received a taxable benefit of $15,000 in 2020, which is the cost base of the shares when he started). All amounts are in Canadian dollars;• Will be making a Tax-Free Savings Account (TFSA) contribution of $12,000 before the end of the year using some of the proceeds from the sale of his Microsoft shares; and• Expects to make the maximum Registered Retirement Savings Plan (RRSP) contribution (calculate the maximum amount he can contribute knowing that his gross salary from September 1, 2020, to December 31, 2020 was $25,000). Microsoft does not have a pension plan

Calculate Anthonys's taxes payable?

b) What is Anthony’s Marginal Tax Rate and Average Tax Rate?

c) Anthony’s best friend (and neighbour), Sam lived on the same floor in an apartment on Guy Street, two doors down from each other. Sam graduated from Concordia in August 2021 and on September 1, 2021, he moved to Toronto where he landed his first full-time job with Amazon earning a salary of $75,000. He rented a small U-Haul van to take his furniture and personal possessions with him. As he drove on his own, he stopped to rest overnight in a hotel in Kingston. Sam kept all his receipts and supporting documents as he prefers to claim the detailed method versus the simplified method for his moving expenses. From the list below, what can Sam deduct for eligible moving expenses on his 2021 Federal personal income tax return?

•U-Haul rental: $475

•Gas: $160 for 597 kilometres

•Going away party: $175 for beer and snacks

•Boxes and packaging materials: $45

•Utility disconnection charge in Montreal: $50

•Utility reconnection charge in Toronto: $60

•Meals during the move (breakfast: $10, lunch $20, dinner $35)

•Cost to replace his Quebec driver’s license for an Ontariodriver’s license: $40

•Cost of cancelling his Montreal lease: $250

•Flowers that he sent to his girlfriend in Montreal before leaving: $50

Calculate eligible moving expenses.

d) Highlight and underline your response. On Federal personal income tax return, moving expenses are:

Decuction or Non Refundable Tax

Credit

e) Anthony’s younger brother Matt just turned 18. He is not interested in filing a personal tax return and is too busy playing video games as he wants to be a pro gamer. He has been working since he was 16 years old testing video games for a gaming company. He is not interested in going to school as he is making pretty good money. Give Matt two(2) reasons for filing a tax return; use facts from the case.

  

2021 Taxable income $45,105 over $45,105 up to $40.020 over $40,020 up to $90.200 over 300,200 up 800040 over $08.040 up to $100.755 over $100.755 up to $151.978 over $151,978 up to $216,511(1) over $216.511 2021 Personal Amount $15.728 2021 Personal Amount Years Page 12 of 13 2013-2014 2015 TABLE A Combined Federal & Quebec Tax Brackets and Tax Rates Year 2019 2021 Marginal Tax Rate Other Capital Year started 2009-2012 2020 2021 Canadian Dividende 27.53% 13.70% 4.53% 32.53% 16.20% 11.43% 37.12% 15.50% 17.77% 41.12% 20.50% 23.29% 45.71% 22.50% 20.62% 47.40% 25.73% 32 04% 50.23% 25.12% 35.00% 53.31% 26.05% 40.10% Non Engible 2021 Tax Rate 18.37% 24.12% 29.40% 34.00% 30.20% 41.30% 44,40% 40.02% TABLE B Quebec Basic Personal Amount 2020 Taxable income first $44.545 over $44.545 up to $46.535 over $48,535 up to 500,000 over $50.000 up to 807,000 over $97,000 up to $108.300 over $108.300 up to $150.473 over $150473 up to $214,300(1) over 1214,300 2020 Personal Amount $15.532 Federal Basic Personal Amount $5,000/year $5,500/year $10,000/year 2020 Personal Amount Other Cap Income Years 2016-2018 2019-2020 2021 2000 Marginal Tax Rat TABLE C Tax-Free Savings Account (TFSA): Annual Limits Annual Limit Canadian Dividends Non Elgtle 27.53% 13.70% 4.53% 32.53% 16 20% 1LAYS 37.12% 10.50% 17.77% 41.12% 20,00% 23.29% 45.71% 22.00% 20.62% 4748% 2373% 32.04% $13,000 10% $13,220 15% (1) See the federal tax rates page for information on the federal personal amount increase. Source: TaxTips.ca Copyright 2002-2021 Boat Harbour Investments Ltd. Gaine Eige 50.15% 25.07% 35.75% 53.31% 20.65% 40.10% $26,500 $27,230 $27,830 2020 Tax Rate 15% 2020 Tax Re 17.50% 23.29% 28.53% 33.13% 30.41% 40.42% TABLE D Registered Retirement Savings Plan (RRSP): Annual Limits Formula for RRSP contribution limit: 18% of your previous year's earned income less your previous year's pension adjustment to an annual maximum. Annual maximum contribution limit 47,14% Annual Limit $5,500/year $6,000/year $6,000/year