Question
Lindsay made a Registered Retirement Saving Plan (RRSP) contribution based on her CRA Notice of Assessment, which shows her the RRSP deduction limit (i.e. how
- Lindsay made a Registered Retirement Saving Plan (RRSP) contribution based on her CRA Notice of Assessment, which shows her the RRSP deduction limit (i.e. how much she can contribute note: her RRSP carry-forward amounts are nil as she has always maximized her annual contributions). She will claim the maximum contribution as a deduction in her 2019 personal income tax return. If she is in the highest marginal tax bracket, what will be her refund? (ignore Non-Refundable Tax Credits) (see Tables A, D) (.25 mark)
- Lindsay has always filed a personal tax return each year since she was 18 years old when she started her residency. Now that she is 30 years old, she is happy that she did so as she has a large tuition amount carried forward that she will claim against her employment income. In 2019 she will be claiming $10,000, after applying the Federal tax credit rate, what will be the amount claimed? (see Table B) (.25 mark)
Table A
2019 Combined Federal and Quebec Personal Income Tax Brackets and Tax Rates | |||
2019 Taxable Income | 2019 Tax Rates | 2019 Taxable Income | 2019 Tax Rates |
first $43,790 | 27.53% | over $95,259 up to $106,555 | 45.71% |
over $43,790 up to $47,630 | 32.53% | over $106,555 up to $147,667 | 47.46% |
over $47,630 up to $87,575 | 37.12% | over $147,667 up to $210,371 | 49.97% |
over $87,575 up to $95,259 | 41.12% | over $210,371 | 53.31% |
Table B
2019 Federal Basic Personal Amount and Quebec Basic Personal Amount | |
2019 Federal Basic Personal Amount | 2019 Quebec Basic Personal Amount |
$12,069 | $15,269 |
Tax rate 15% | Tax rate 15% |
Table D
Registered Retirement Savings Plan (RRSP): Annual Limits | |
Year | Contribution limit |
2015 | $24,930 |
2016 | $25,370 |
2017 | $26,010 |
2018 | $26,230 |
2019 | $26,500 |
2020 | $27,230 |
Can anyone help me with both questions a and b. please. Thank you!
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