Assignment $2$

Question $3$

Required: Determine the maximum amount of $2022$ personal tax credits, including transfers from a spouse or

dependant, that can be applied against federal Tax Payable by the taxpayer in each of the following independent Cases.

A calculation of Tax Payable is NOT required.

Mr$.$ Holm has Net Income for Tax Purposes of $$55,000,$ all of which is investment income. He is single and

provides support for his mother. His mother is a widow who resides in Latvia and has income of $$1,100$ per year.

Mrs$.$ Thomas has Net Income for Tax Purposes of $$250,000,$ all of which is employment income. Her employer

has withheld and remitted the required EI and CPP amounts. Mrs$.$ Thomas was married on December $1,$

Her wife, a nursing student, had salary of $$21,000$ for the period from January $1$ to November $30,2022$

and $$3,200$ for the month of December $2022.$

Mr$.$ Jackson has Net Income for Tax Purposes of $$75,000,$ all of which is rental income. He lives with his

common$-$law wife and their $2$ children. The children are $7$ and $8$ years of age and have no income for the year. His

wife has Net Income for Tax Purposes of $$8,500.$

Mrs$.$ James is married and has Net Income for Tax Purposes of $$110,000,$ none of which is employment income

or income from self$-$employment. Her $19-$year$-$old dependent daughter attends university. Her husband has Net

Income for Tax Purposes of $$10,500,$ and her daughter has Net Income for Tax Purposes of $$8,500.$ Her daughter

does not wish to transfer her tuition, education or textbook credits.

Mr$.$ Morant is $68$ years old and has Net Income for Tax Purposes of $$29,500,$ which is comprised of Old Age

Security benefits and pension income paid out of his Registered Retirement Income Fund. He is single and he has

a son who is $13$ years old and is deaf. He has no income of his own.

Ms$.$ Young is divorced and maintains a residence far from her former spouse. She has custody of the $2$ children

from the marriage. They are aged $9$ and $12$ and in good health. They both earn $$750$ from paper routes. Her Net

Income for Tax Purposes is $$72,000,$ all of which is spousal support payments.