Fundamentals of Income Tax Workbook 2018 Volume 2 237 2018 H&R Block Canada, Inc. Chapter Review Problem 19.1 Assignment # 2 Owen (SIN 805 232 105) and Sonja (SIN 805 232 212) Cornell are married. They live at 2621 River Road, Your City, YP, P0M 1B0, phone number 983-2425. Owen was born on August 19, 1974 and Sonja was born on June 3, 1976. Owen and Sonja are the parents of two children: Kirsten (born on July 1, 1998) and Ingrid (born on May 17, 2007). Ingrid does not have any income. Kirsten (SIN 805 232 329) graduated from secondary school in June. She received a scholarship for her excellent work in school and has a T4A with $5,000 in Box 105. Kirsten took the summer off to do some traveling. In September, Kirsten began fulltime study at the University of Your Province. She lives in a university residence during the academic year, but she uses River Road as her official address. In addition to tuition of $3,000, Kirsten spent $350 on books and $25 for student association fees. She has receipts for these expenses. Kirstens T2202A shows that she attended university full-time for four months. Owen works as a meteorologist and Sonja works part-time as a graphic artist. Their information slips are reproduced on the following pages. Owen and Sonja paid the following medical expenses in 2017, for which they were not reimbursed by their insurance: On July 16, $2,100 to Dr. Wolf for Kirstens orthodontist bill; On August 15h, $5,000 to Dr. Wolf for Ingrids orthodontist bill; and For the year, $2,500 for Sonjas chiropractors bills. Owen has official receipts for these expenses. The only other medical expenses the Cornells had in 2017 were the premiums for the health insurance plan Owen paid through his employer. Sonja was in hospital for six weeks during the year, but all of her expenses were covered by their health plan. Sonja paid Victoria Lipinski (SIN 805 212 438) $2,000 to care for Ingrid after school on the days she worked and for the six weeks she was in hospital. Based on the information provided, answer the questions that follow: Please do not attemt to complete this assignment using the TPS. Data entry of these topics has not yet been discussed. Also, your answers should reflect your theoretical tax knowledge not your data entry skills. Download the fillable version of the federal and provincial Schedule 11 from the CRA website and complete them manually. Print-outs of Schedule 11 completed by the TPS are not accepted. Assignment #2 must be handed in at the beginning of next class to count 238 Chapter 19 Students 2018 H&R Block Canada, Inc. Fundamentals of Income Tax Workbook 2018 Volume 2 239 2018 H&R Block Canada, Inc. Box 22: BC: 11,280; AB: 11,660; SK: 12,675; MB: 14,210; ON: 12,100; NB: 14,110; NS: 14,800; PE: 14,450; NL: 14,446; YT: 11,590; NT: 10,400; NU: 9,370; 240 Chapter 19 Students 2018 H&R Block Canada, Inc. 1. How much of the scholarship she received must Kirsten include in her income? Explain your answer. 2. Complete Kirstens federal and provincial Schedule 11. She wants to transfer the maximum amounts to her father. Fundamentals of Income Tax Workbook 2018 Volume 2 241 2018 H&R Block Canada, Inc. 3. Kirsten is filing her own return; will she receive a GST/HST credit? Why or why not? 4. How much of her expenses for books and association fees can Kirsten claim on her tax return? Explain your answer. 5. Explain how the child care expenses should be claimed (by whom and how much). 6. List below the medical expenses that can be claimed. 7. Who should claim the medical expenses? Explain your answer. 8. Calculate the amount of the medical expense to be claimed on Line 330 and on Line 331 if applicable and then complete the section of Schedule 1 provided below. Show your calculations for Line 330 and Line 331