Calculate Sam's NIFTP, Taxable income

Taxpayer’s Name: Sam Phillip, age 77

Sam’s Income Information:

Employment income: $100,000

CPP contribution: Nil

EI contribution: $856.36

Taxes withheld: $21,000

Pension income: $20,000

Old Age Security: 7,200

Home office Costs:

Electricity $3,250

House insurance 2,890

Mortgage interest 10,000

Property taxes 15,000

Repairs 5,000

Lawn service 2,000

Total $38,140

Personal automobile used at work

27% usage

Total operating cost (100%) $4,500

You can ignore Capital Cost Allowance.

Other benefits received:

Group accident and sickness insurance: employer costs $300 a month

Life insurance: employer costs $125 a month

RPP: employer costs $15,500

Gold watch on 35th year anniversary: $1,800

Christmas gifts: $100 Safeway certificate and food hamper worth $75

Required:

1. Calculate Sam’s NIFTP, Taxable income. You do not need to prepare tax forms or compute provincial taxes.

2. This all is to be calculated under Canadian tax laws.