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Ava has asked you to help prepare her 2021 personal income tax returns (combined Federal and Quebec). For 2021, she provided you with the following:
Ava has asked you to help prepare her 2021 personal income tax returns (combined Federal and Quebec). For 2021, she provided you with the following:
- T4 tax slip from Hydro-Qubec where she works as an engineer, reporting her 2021 gross annual salary of $105,000;
- T5 tax slip showing interest income received in 2021 of $1,500;
- On December 1, 2021, she sold 100 shares in Canadian Tire for $180/share (she had purchased 150 shares when they were at $110/share in 2019);
- Made a Tax-Free Savings Account (TFSA) contribution of $6,000 on January 1, 2021;
- Contributed the maximum to her Registered Retirement Savings Plan (RRSP) plan on May 15, 2021, when she received her company bonus (note that her 2020 earned income was $100,000; she maximizes her RRSP contribution each year and is not part of a company pension plan);
- Professional dues from the Order of Quebec Engineers that she can deduct in the amount of $945; and
- Has a capital loss of $600 from a previous year that she can deduct against her capital gain.
a) It is February 18, 2022, calculate Avas 2021 Taxable Income. (1.5 marks)
Calculate Avas 2021 Taxable Income (1.5 marks -.25 marks each)
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