Irene has come to you for help in calculating her Total Federal Tax for 2022. 

Irene is a single mother to a 10-year old boy.  She pays her ex-husband $800 per month spousal support and $2,200 per month child support.

Irene is an accountant who earns $137,600 per year.  She also has a side business making jewellery.  Her net business income was $11,434 in 2022. 

Irene is quite interested in investing and had the following transactions in 2022:

• Received $1,300 in non-eligible dividends
• Sold shares in Company A for $5,400 (ACB is $8,850)
• Sold shares in XYZ Corporation for $3,750, which she purchased 3 years ago for $1,745
• Contributed $12,500 to her RRSP

A few years ago, Irene invested in small business corporation shares costing $7,200, which she sold this year for $4,750.

The required CPP contributions were deducted by Irene’s employer.  Her employer also deducted EI contributions of $953

In addition, Irene made $900 in charitable donations during 2021.

 

BONUS: What is Irene’s average tax rate and marginal tax rate?

 

 

Submission Format (recommend using Excel)

3(a)	Employment Income
	Business Income
	Property Income
	Other Income
	= Income from All Sources
3(b)	+ Taxable Capital Gains
3(c)	- Other Deductions
3(d)	- Loss for Employ, Bus, Prop, ABIL
= Division B Net Income
- Division C Deductions
= Taxable Income
Federal Tax on Taxable Income: (calculate here)
- Federal Non-refundable Tax Credits
- Federal Refundable Tax Credits
= Total Federal Tax