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Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old. He is employed at MOT Consulting and has
Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old. He is employed at MOT Consulting and has an annual salary of $157,000. He has asked you whether he will have a tax payable or tax refund for 2019 (ignore provincial taxes). Other information he shared with you is as follows:
- His employer paid for the $300/month underground parking spot at the companys head office
- His employer gave him a $3,000 flat-screen tv as an award for his 10-year work anniversary.
- His employer gave him a $25 t-shirt for him to wear on the annual Terry Fox Run
- His employer paid $2,200 in premiums for him towards his membership in the company-sponsored group disability plan
- He earned $6,500 in interest on his investments
- Manuel made an RRSP contribution of $12,000 and paid professional dues of $1,500.
- Manuel and his spouse did not incur any childcare expenses during the year.
- He is required by his employer to use his own automobile in the course of his employment. His total automobile costs for the year, including lease costs, gas, repairs and maintenance, are $12,000. He drove his car 24,000 kilometres during the year. 10,000 kilometres of this amount was for employment purposes.
- His spouse had employment income in 2019 of $4,000 from her part-time job.
- His employer made the required CPP and EI withholdings from his semi-monthly pay cheques throughout the year.
- Manuel was enrolled as a part-time student at Seneca College and took two courses during the year at a cost of $3,600.
- Manuel made charitable donations of $3,000 in 2019.
- Manuel incurred medical expenses of $5,600 for his family for the 12 month period ending on September 30, 2019. This was the 12 month-period ending in 2019 for which he incurred the highest amount of medical expenses. For the 2019 calendar year his medical expenses for his family totaled ($5,200).
- His employer deducted federal income tax of $25,750.
REQUIRED: Complete the relevant lines of the following tax forms to determine Manuels:
- Employment Income (4 marks)
- Total Income (1 mark)
- Net Income (4 marks)
- Taxable Income (1 mark)
- Non-refundable tax credits (10 marks)
- Federal tax liability (3 marks)
- Federal tax payable or refund (2 marks)
Ignore provincial income tax and show all of your work
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