Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you help me solve it (Calculate the Total Income, Net Income, and Taxable Income)? (Tax Payable With Multiple Credits) Ms. Eleanor Victoria's husband died

Can you help me solve it (Calculate the Total Income, Net Income, and Taxable Income)?

image text in transcribedimage text in transcribed

(Tax Payable With Multiple Credits) Ms. Eleanor Victoria's husband died two years ago. After her husband died, she moved from her house in Prince George, B.C., to a rented house in Victoria, B.C. Ms. Victoria's widowed mother, Marjorie Vancouver, lives with Ms. Victoria and takes care of the house, Ms. Victoria's younger daughter, Amy, and all of the household cooking. She has 2020 Net Income For Tax Purposes of $8,000. She does not have a mental or physical disability. Diane Victoria, Eleanor's older daughter, is studying psychology at McGill University in Montreal. Her field is addiction research with a special emphasis on gambling. She does volunteer work at a gambling addiction treatment centre in Montreal in the summers. As Eleanor has paid for her tuition and living costs, Diane has agreed that any credits available should be transferred to her mother. Diane has decided not to file a tax return this year as she is too busy with her studies and volunteer work. Her Net Income For Tax Purposes of $2,300 was earned driving for a client of the addiction treatment centre who had lost his licence after being charged with impaired driving. Other information concerning Ms. Victoria for 2020 is as follows: 1. Eleanor was born on May 15, 1968. 2. The birth dates and Net Income For Tax Purposes for the year of her dependants are as follows: Net Income Diane Amy (Net Income = UCCB) Marjorie Birth Date (Y/M/D) 1996-05-14 2004-10-11 1935-05-21 $2,300 720 8,000 3. Eleanor's T4 for 2020 showed the following: Salary Employee's El Premiums Employee's CPP Contributions RPP Contributions Pension Adjustment Union Dues Charitable Donations $60,202 856 2,898 2,406 7,829 749 175 4. Eleanor and her family had the following medical expenses for 2020, all of which Eleanor paid for: Patient Eleanor Eleanor Marjorie Marjorie Diane Amy Amy Total Medical Expenses Grace Hospital Paramed Home Health Dr. Zhang (Optometrist) Pharmacy Dr. Glassman Walk Right Foot Clinic Dr. Tamo Description Ambulance Charge Nursing Care Contact Lenses Prescription Physiotherapist Orthotics Dental Fees Amount $ 392 1,350 110 75 100 450 1,120 $3,597 5. In addition to the $175 in charitable contributions withheld by Eleanor's employer, Eleanor and Diane had the following charitable donations for 2020: Donor Charitable Donation Receipts Amount Eleanor Heart And Stroke $ 375 Eleanor Terry Fox Foundation 50 Diane Addiction Research Council Of Canada 100 Because of donations in previous years, neither Diane nor Eleanor qualify for the first-time donor's super credit. 6. During 2020, Diane was in university full time for eight months and part time for an additional two months. Her tuition fees for the year were $7,000. (Tax Payable With Multiple Credits) Ms. Eleanor Victoria's husband died two years ago. After her husband died, she moved from her house in Prince George, B.C., to a rented house in Victoria, B.C. Ms. Victoria's widowed mother, Marjorie Vancouver, lives with Ms. Victoria and takes care of the house, Ms. Victoria's younger daughter, Amy, and all of the household cooking. She has 2020 Net Income For Tax Purposes of $8,000. She does not have a mental or physical disability. Diane Victoria, Eleanor's older daughter, is studying psychology at McGill University in Montreal. Her field is addiction research with a special emphasis on gambling. She does volunteer work at a gambling addiction treatment centre in Montreal in the summers. As Eleanor has paid for her tuition and living costs, Diane has agreed that any credits available should be transferred to her mother. Diane has decided not to file a tax return this year as she is too busy with her studies and volunteer work. Her Net Income For Tax Purposes of $2,300 was earned driving for a client of the addiction treatment centre who had lost his licence after being charged with impaired driving. Other information concerning Ms. Victoria for 2020 is as follows: 1. Eleanor was born on May 15, 1968. 2. The birth dates and Net Income For Tax Purposes for the year of her dependants are as follows: Net Income Diane Amy (Net Income = UCCB) Marjorie Birth Date (Y/M/D) 1996-05-14 2004-10-11 1935-05-21 $2,300 720 8,000 3. Eleanor's T4 for 2020 showed the following: Salary Employee's El Premiums Employee's CPP Contributions RPP Contributions Pension Adjustment Union Dues Charitable Donations $60,202 856 2,898 2,406 7,829 749 175 4. Eleanor and her family had the following medical expenses for 2020, all of which Eleanor paid for: Patient Eleanor Eleanor Marjorie Marjorie Diane Amy Amy Total Medical Expenses Grace Hospital Paramed Home Health Dr. Zhang (Optometrist) Pharmacy Dr. Glassman Walk Right Foot Clinic Dr. Tamo Description Ambulance Charge Nursing Care Contact Lenses Prescription Physiotherapist Orthotics Dental Fees Amount $ 392 1,350 110 75 100 450 1,120 $3,597 5. In addition to the $175 in charitable contributions withheld by Eleanor's employer, Eleanor and Diane had the following charitable donations for 2020: Donor Charitable Donation Receipts Amount Eleanor Heart And Stroke $ 375 Eleanor Terry Fox Foundation 50 Diane Addiction Research Council Of Canada 100 Because of donations in previous years, neither Diane nor Eleanor qualify for the first-time donor's super credit. 6. During 2020, Diane was in university full time for eight months and part time for an additional two months. Her tuition fees for the year were $7,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions