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Here are some preliminary details and data about Amanda. She needs your help computing and filing her 2021 income taxes (due in mid-2022). She is
- Here are some preliminary details and data about Amanda. She needs your help computing and filing her 2021 income taxes (due in mid-2022). She is single with no dependents. She earns a salary of $200,000 and is a resident of Ontario. Below is a list of Amanda's financial expenses/activities during the 2021 tax year, which may (or may not) be relevant to computing her taxes.
- 1. She made the maximum contribution to CPP and EI for 2021 (and you must look up these numbers online from the relevant websites.)
- 2. She made an $8,500 donation to Sick Kids Toronto.
- 3. She contributed $6,000 to a TFSA, invested in a GIC earning 2% in 2021
- 4. She contributed $10,000 to an RRSP, which is invested in a balanced international equity mutual fund which earned 6% in 2021.
- 5. She invested $20,000 into a taxable investment account, which earned 3.5% interest from a Canadian bond ETF.
- 6. She had medical expenses, for which she was *not* reimbursed by her employer's insurance company totaling $4,500.
- 7. She paid a total of $36,000 in (personal) home mortgage payments, of which $16,000 was interest.
- 8. She gave $7,000 as a gift to her younger brother who is 21 years-old.
Please compute the total amount due (Federal and Provincial) in taxes for the 2021 tax year (due by April 30th, 2022). You must show your work for all calculations.
- What is her net income? What is her taxable income? What is her average tax rate? What is her marginal tax rate?
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Net Income Amandas net income is her salary minus her CPP and EI contributions 200000 3559 CPP 2898 ...Get Instant Access to Expert-Tailored Solutions
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