Eric did not complete the TD1 form - Personal Tax Credits Return correctly with his employer for the tax year 2018 and upon completing his 2018 Personal Income Tax Returns, he now sees that his employer did not withhold enough Federal income taxes. This results in Eric owing income taxes which he has estimated at $3,000 to the Canada Revenue Agency (CRA) 1) By what date must Eric file his 2018 personal income tax returns? 2) If Eric is late in filing his 2018 Personal Income Tax Returns by one day, what would be the penalty? Assume that it is February 25, 2019 and Eric is trying to think of the best way he can reduce his 2018 taxes payable 3) Should Eric make a Registered Retirement Savings Plan (RRSP) contribution or a Tax-Free Savings Account (TFSA) contribution to help reduce his 2018 taxes payable? 4) What is the reason for your response in 3)? 5) What is the latest date that Eric could make the contribution in response c) for the contribution to be used in his 2018 Personal Income Tax Return? 6) Eric just turned 23 years old on January 2, 2019. He has never made any TFSA contributions before, what amount could he contribute to his TFSA? (Include carryforward amounts.) 7) Eric has decided to borrow money from his Registered Retirement Savings Plan (RRSP) to participate in the Home Buyer's Plan (HBP) for a down payment on his first home The value of his RRSP is $50,304. What is the maximum that Eric can withdraw from his RRSP under the HBP? 8) If Eric withdraws the maximum amount permitted from his RRSP under the HBP for a down payment, what is the value of the condo that Eric is looking to purchase under a conventional mortgage? Note that Eric does not have any additional funds, other than this money, that he wishes to use towards the down payment. 9) Under the Home Buyer's Plan (HBP), what is the minimum that Eric must pay back each year into his RRSP? 10) What is the consequence if Eric does not repay the withdrawal from the RRSP? Eric did not complete the TD1 form - Personal Tax Credits Return correctly with his employer for the tax year 2018 and upon completing his 2018 Personal Income Tax Returns, he now sees that his employer did not withhold enough Federal income taxes. This results in Eric owing income taxes which he has estimated at $3,000 to the Canada Revenue Agency (CRA) 1) By what date must Eric file his 2018 personal income tax returns? 2) If Eric is late in filing his 2018 Personal Income Tax Returns by one day, what would be the penalty? Assume that it is February 25, 2019 and Eric is trying to think of the best way he can reduce his 2018 taxes payable 3) Should Eric make a Registered Retirement Savings Plan (RRSP) contribution or a Tax-Free Savings Account (TFSA) contribution to help reduce his 2018 taxes payable? 4) What is the reason for your response in 3)? 5) What is the latest date that Eric could make the contribution in response c) for the contribution to be used in his 2018 Personal Income Tax Return? 6) Eric just turned 23 years old on January 2, 2019. He has never made any TFSA contributions before, what amount could he contribute to his TFSA? (Include carryforward amounts.) 7) Eric has decided to borrow money from his Registered Retirement Savings Plan (RRSP) to participate in the Home Buyer's Plan (HBP) for a down payment on his first home The value of his RRSP is $50,304. What is the maximum that Eric can withdraw from his RRSP under the HBP? 8) If Eric withdraws the maximum amount permitted from his RRSP under the HBP for a down payment, what is the value of the condo that Eric is looking to purchase under a conventional mortgage? Note that Eric does not have any additional funds, other than this money, that he wishes to use towards the down payment. 9) Under the Home Buyer's Plan (HBP), what is the minimum that Eric must pay back each year into his RRSP? 10) What is the consequence if Eric does not repay the withdrawal from the RRSP
