Juliet is an accountant living with her two children. Juliet is divorced and has sole custody of her two children, aged 8 and 6. According to the divorce agreement, Juliet is entitled to receive $400/month in spousal support and $600/month in child support. In 2020, Juliet received total support payments from her former spouse of $12,000.

A copy of Juliets 2020 T4 slip from her employment shows a gross salary of $72,000. From this amount, the employer withheld the following amounts:

• Income tax: $19,400
• CPP: $2,898
• EI: $856
• RPP contributions $3,600

Juliet pays for after-school care for her children. In 2020, she paid a total of $7,200 to registered daycare. The children are cared for from 3:00 to 5:00 pm every weekday. Juliet picks up the children at 5:00 after her workday.

Juliet was short of cash funds earlier in the year and redeemed an RRSP (from her self-directed account) for $2,000 (income tax withheld was $200).

Juliet is also a part-time student, taking additional courses in accounting and auditing. Total tuition and cost of materials were $2,100. Juliet received a scholarship for $3,000.

In 2020 Juliet reported capital gains of $8,000 and capital losses of $3,800.

Required:

1. Calculate Juliets net income for tax purposes according to section 3 of the Income Tax Act.

2. Juliet is in a new relationship. If she marries her new partner but continues to have custody of her children, can she still deduct child care expenses? Are there any restrictions Juliet should be made aware of concerning the deductibility of child care expenses?