Question
Given the information below, calculate Anthonys combined Federal and Quebec taxes payable. See Table A, use 2021 tax rates. Ignore Non-Refundable Tax Credits. (2.5 marks)
Given the information below, calculate Anthonys combined Federal and Quebec taxes payable. See Table A, use 2021 tax rates. Ignore Non-Refundable Tax Credits. (2.5 marks)
Anthony estimates the following for 2021:
Expects to receive a T4 tax slip from Microsoft reporting his 2021 gross annual salary of $77,250 (received a 3% on January 1, 2021, on his gross annual salary from 2020);
Expects to receive a T5 tax slip with interest received in 2021 of $1,500; Sold 50 Microsoft shares on September 1, 2021 that he received a year ago as a signing bonus when he started working. He received the shares when they were valued at $300/share and recently sold them when they hit $380/share (he received a taxable benefit of $15,000 in 2020, which is the cost base of the shares when he started). All amounts are in Canadian dollars;
Will be making a Tax-Free Savings Account (TFSA) contribution of $12,000 before the end of the year using some of the proceeds from the sale of his Microsoft shares;
and Expects to make the maximum Registered Retirement Savings Plan (RRSP) contribution (calculate the maximum amount he can contribute knowing that his gross salary from September 1, 2020, to December 31, 2020 was $25,000). Microsoft does not have a pension plan.
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