Jack was supposed to graduate in April 2020 but realized he was missing a course to graduate. He started a full-time job on September 1, 2020, at Microsoft. His gross annual salary as a Software Engineer is $75,000. He never filed a tax return and only recently filed his 2020 personal income tax returns once he realized the importance in filing and how easy it was. He is now looking to prepare a tax estimate for his 2021 personal income tax returns to avoid surprises when filing his actual 2021 tax returns in April 2022.

1. Given the information below, calculate Jacks combined Federal and Quebec taxes payable. See picture below, use 2021 tax rates. Ignore Non-Refundable Tax Credits.

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.

1. Calculate Anthonys Taxes Payable

2. What is Jacks Marginal Tax Rate and Average Tax Rate?

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Combined Federal & Quebec Tax Brackets and Tax Rates 2021 Marginal Tax Rates 2020 Marginal Tax Rates Canadian Dividends Canadian Dividends Other Capital Other Capital Income Gains Non- Non- Income Gains Eligible 2021 Taxable income Eligible Eligible 2020 Taxable income Eligible first $45,105 27.53% 13.76% 4.53% 18.37% first $44,545 27.53% 13.76% 4.53% 17.50% over $45, 105 up to $49,020 32.53% 16.26% 11.43% 24.12% over $44,545 up to $48,535 32.53% 16.26% 11.43% 23.25% over $49,020 up to $90,200 37.12% 18.56% 17.77% 29.40% over $48,535 up to $89,080 37.12% 18.56% 17.77% 28.53% over $90,200 up to $98,040 41.12% 20.56% 23.29% 34.00% over $89,080 up to $97,069 41.12% 20.56% 23.29% 33.13% over $98,040 up to $109,755 45.71% 22.86% 29.62% 39.28% over $97,069 up to $108,390 45.71% 22.86% 29.62% 38.41% over $109,755 up to $151,978 47.46% 23.73% 32.04% 41.30% over $108,390 up to $150,473 47.46% 23.73% 32.04% 40.42% over $151,978 up to over $150,473 up to 50.23% 25.12% 35.86% 44.48% 50.15% 25.07% 35.75% 43.51% $216,511(1) $214,368(1) over $216,511 53.31% 26.65% 40.10% 48.02% over $214,368 53.31% 26.65% 40.10% 47.14% Combined Federal & Quebec Tax Brackets and Tax Rates 2021 Marginal Tax Rates 2020 Marginal Tax Rates Canadian Dividends Canadian Dividends Other Capital Other Capital Income Gains Non- Non- Income Gains Eligible 2021 Taxable income Eligible Eligible 2020 Taxable income Eligible first $45,105 27.53% 13.76% 4.53% 18.37% first $44,545 27.53% 13.76% 4.53% 17.50% over $45, 105 up to $49,020 32.53% 16.26% 11.43% 24.12% over $44,545 up to $48,535 32.53% 16.26% 11.43% 23.25% over $49,020 up to $90,200 37.12% 18.56% 17.77% 29.40% over $48,535 up to $89,080 37.12% 18.56% 17.77% 28.53% over $90,200 up to $98,040 41.12% 20.56% 23.29% 34.00% over $89,080 up to $97,069 41.12% 20.56% 23.29% 33.13% over $98,040 up to $109,755 45.71% 22.86% 29.62% 39.28% over $97,069 up to $108,390 45.71% 22.86% 29.62% 38.41% over $109,755 up to $151,978 47.46% 23.73% 32.04% 41.30% over $108,390 up to $150,473 47.46% 23.73% 32.04% 40.42% over $151,978 up to over $150,473 up to 50.23% 25.12% 35.86% 44.48% 50.15% 25.07% 35.75% 43.51% $216,511(1) $214,368(1) over $216,511 53.31% 26.65% 40.10% 48.02% over $214,368 53.31% 26.65% 40.10% 47.14%