Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 Amandas financial expenses/activities during the 2021 tax year, which may (or may not) be relevant to computing her taxes.

She made the maximum contribution to CPP and EI for 2021 (and you must look up these numbers online from the relevant websites.)

She made an $8,500 donation to Sick Kids Toronto.

She contributed $6,000 to a TFSA, invested in a GIC earning 2% in 2021

She contributed $10,000 to an RRSP, which is invested in a balanced international equity mutual fund which earned 6% in 2021.

She invested $20,000 into a taxable investment account, which earned 3.5% interest from a Canadian bond ETF.

She had medical expenses, for which she was *not* reimbursed by her employers insurance company totaling $4,500.

She paid a total of $36,000 in (personal) home mortgage payments, of which $16,000 was interest.

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Distressed Debt Analysis Strategies For Speculative Investors

Authors: Stephen Moyer

1st Edition

1932159185, 978-1932159189

More Books

Students also viewed these Finance questions

Question

Vescribe the merits of metadata.

Answered: 1 week ago