Michael and Rebecca Smith have been married for 25 years. In late February 2020, Michael and Rebecca comes to your office with their tax information for 2019. Rebecca works for Seneca College as a professor, which has excellent health and dental plan that reimburses 100% of all medical expenses. Michael is retired and volunteers with the local library.

FIELD	INPUT
SIN	527-000-129
TITLE	Mrs.
FIRST NAME	Rebecca
LAST NAME	Smith
ADDRESS	415 Homewood Ave
CITY	Toronto
PROVINCE	Ontario
POSTAL CODE	M4W 2K3
HOME PHONE	506-636-5997
BIRTHDATE	October 25, 1962
GENDER	Female
MARITAL STATUS	Married
LANGUAGE	English
ADDITIONAL INFO:	CRA Online mail - No Do you want a preparer - No Did you dispose of a property - No? Is a Canadian Citizen Provide Elections Canada with information Doesn't own foreign property Authorize return for EFILE, authorization is on file Contact client for both pre and post-assessment Limit from 2018 Notice of (Re) Assessment - $63,874

FIELD	INPUT
SIN	527-000-079
TITLE	Mr.
FIRST NAME	Michael
LAST NAME	Smith
ADDRESS	415 Homewood Ave
CITY	Toronto
PROVINCE	Ontario
POSTAL CODE	M4W 2K3
HOME PHONE	506-636-5997
BIRTHDATE	August 12, 1950
GENDER	Male
MARITAL STATUS	Married
LANGUAGE	English
ADDITIONAL INFO:	Is a Canadian Citizen Provide Elections Canada with information Doesn't own foreign property Authorize return for EFILE, authorization is on file Contact client for both pre and post-assessment

Michael & Rebecca have 2 children:

Name	Relationship	Birthday
Anna Smith	Daughter	March 12, 2008
Roger Smith	Son	April 26, 2003

Additional information regarding the children.

• Michael & Rebecca paid for childcare for Anna. See table 5.

All joint investment income should be split 50/50

Table 1 - T4A (OAS) Michael	Box	Amount
Taxable Pension Paid	18	7,100.00
Income Tax Deducted	22	710.00

Table 2 - T4A (P) Michael	Box	Amount
Retirement Benefit	14	8,800.00
Taxable CPP Benefits	20	8,800.00
Income Tax Deducted	22	880.00
Number of months - retirement	23	12

Table 3 - Donor	Charitable Donation Receipt	Amount
Michael	United Way	600
Michael	Art Gallery of Ontario	350

Table 4 - RRSP Contribution	Company	Amount
Rebecca
July 1, 2019	Scotiabank	8,000.00
Feb 1, 2020	BMO	1,500.00

Table 5 - Child Care Receipt	Paid By	Paid To	SIN	Amount
Babysitting - Anna	Michael & Rebecca	Judith Johnson	527-000-329	8,000.00

Table 6 - RC62 Rebecca	Box	Amount
Total Benefits paid	10	1,440

Submissions:

1. Submit a summary of the following information in table form (not the software print-out):
   1. The net income for John & Ann 

Briefly explain the CRA's rules with respect to the deductions from total income to arrive at net income. In your explanation, refer to the specific calculation for John & Ann.

The non-refundable tax credits for John & Ann 

Briefly explain the concept of non-refundable tax credits. In your explanation, refer to the specific calculation for John & Ann.

Summary of the 2019 Tax Return

Briefly explain the benefit to a couple of filing a joint return. In your explanation, refer to an example specific to the tax returns of John & Ann. 

Instructions

• You may use Profile Tax 2019, Studio Tax 2019, or any other tax Software (free) to do your assignment.