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Hi, I have a difficult question about income tax, please help me to solve, thanks! Question 4: Income Tax (25 marks) Boris, age 36, works
Hi, I have a difficult question about income tax, please help me to solve, thanks!
Question 4: Income Tax (25 marks) Boris, age 36, works as a sales representative for a pharmaceutical company. He is single and has no dependents. He has provided you with the following information and asked you to help him complete his 2016 tax return. Pay Stub: EARNINGS YTD 93,000.00 Income Tax CPP EI Earnings BEFORE TAX DEDUCTIONS YTD Group RRSP 4,650.00 GOVERNMENT AFTER TAX DEDUCTIONS Long term disability YTD 1,104.42 YTD 23,555.95 2,564.10 955.04 EMPLOYER PAID BENEFITS YTD Dental 3,009.45 EHC 5,198.66 Life (2X) 478.00 Employer RRSP 2,325.00 Workers Compensation 302.76 Additional info: He withdrew $7,950 from his personal RRSP (separate from the Group RRSP with his employer) four years ago as part of the homebuyer's plan. He has repaid the minimum of $530 each year and plans to do the same this year. The balance outstanding based on his 2015 Notice of Assessment is $6,890. He does not have any unused contributions from previous years. According to his most recent NOA his deduction limit is $23,900. He has also made a contribution of $6,200 to his personal RRSP account this taxation year. He has the following investments: High interest savings bank account that earned $89.25 in interest. TFSA Account with a balance of $14,300. He has contributed $750 in 2016. He earned foreign dividends of $100 and interest of $72 in the TFSA account. Non-registered investment account - he sold publicly traded shares at a loss of $385. He earned eligible dividends of $950. He was not provided with an information slip (refer here for instructions: http://www.cra-arc.gc.ca/txdvdls/tpcscm-tx/rtrn/cmpltng/ddctns/lns409485/425-eng.html). He also incurred carrying charges of $25 on the non-registered account. He paid $1,500 for professional membership fees. His employer reimbursed him for this. 2 He does not qualify for the Canada Employment Amount. Complete a 2016 tax return for Boris using the below forms. Links to relevant forms: T1 General: http://www.cra-arc.gc.ca/E/pbg/tf/5006-r/5006-r-16e.pdf Schedule 1 Federal Tax: http://www.cra-arc.gc.ca/E/pbg/tf/5000-s1/5000-s1-16e.pdf Schedule 3 Capital Gains or Losses: http://www.cra-arc.gc.ca/E/pbg/tf/5000-s3/5000-s3-16e.pdf Schedule 4 Statement of Investment Income: http://www.cra-arc.gc.ca/E/pbg/tf/5000-s4/5000s4-16e.pdf Schedule 7: RRSP and PRPP: http://www.cra-arc.gc.ca/E/pbg/tf/5000-s7/5000-s7-16e.pdf Canada Pension Plan Contributions and Overpayment: http://www.cra-arc.gc.ca/E/pbg/tf/5000s8/5000-s8-16e.pdf Ontario Tax: http://www.cra-arc.gc.ca/E/pbg/tf/5006-c/5006-c-16e.pdf Ontario dividend tax credit: http://www.cra-arc.gc.ca/E/pbg/tf/5006-d/5006-d-16e.pdfStep by Step Solution
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