Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ava has not yet filed her 2021 personal income tax returns (combined Federal and Quebec) and has asked you for help. For 2021, she provided

Ava has not yet filed her 2021 personal income tax returns (combined Federal and Quebec) and has asked you for help. 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 $60 from a previous year that she can deduct against her capital gain.

Question: What is Avas marginal tax rate?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

6th International Edition

0071229035, 978-0071229036

More Books

Students also viewed these Finance questions

Question

LO3 Describe the purpose of equity legislation.

Answered: 1 week ago

Question

LO4 Describe the purpose of privacy legislation.

Answered: 1 week ago