Case Study Information

Steve Jones $(35)$ has taxable income for $2022$ of $$225,000$ in Ontario. His wife Reena works part$-$time at her favourite furniture store, Bad Boy Furniture, and she earned $$30,000$ in $2022.$ Reena took advantage of various employee discounts and bought a whole bedroom set for $$10,000,$ when the client price was $$15,000$ and Bad Boy$$s price was $$7,000.$ The employee discount was available to all employees. Steve and Reena paid $$1,500$ per month in $2022$ for daycare costs for their two children, Sylvia $(8$ years old$),$ and Priyanka $(3$ years old$).$

Robert Jones, Steve$$s brother $(40),$ is a part$-$time student living in the same province as his brother and has taxable income of $$18,000.$ Robert is self$-$employed and if his federal tax payable has been the about same for the past three years. Robert was supposed to file his tax return by June $15,2023,$ but he did not file it until October $18,2023.$ Robert died on November $17,2023.$ When Robert died, he had generated income that had not been received at the date of death.

Based on the above case study information ONLY, please answer the following six questions.

Case Study Questions

Question $1(8$ points$)$

Calculate Steve and Robert Jones' federal tax liability based on the following $2022$ federal tax brackets below? Please do not take into consideration any tax credits. Please just calculate the federal tax liability.

$2022$ Tax Brackets

Federal Tax Ontario Tax

$$0-$ $$50,19715\mathrm{.}00\%$ $$0-$ $$46,6265\mathrm{.}05\%$

$$50,198-$ $$100,39220\mathrm{.}50\%$ $$46,627-$ $$92,4549\mathrm{.}15\%$

$$100,393-$ $$155,62526\mathrm{.}00\%$ $$92,455-$ $$150,00011\mathrm{.}16\%$

$$155,626-$ $$221,70829\mathrm{.}00\%$ $$150,000-220,00012\mathrm{.}16\%$

$$221,709+33\mathrm{.}00\%$ $$220,001+13\mathrm{.}16\%$

Steve's federal tax liability is $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Reena's federal tax liability is $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Robert's federal tax liability is $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$