Monir and Jackie, both in their 40s, own a new 2-story house in Pointe Saint-Charles. Jackie is expecting their first child in September.

Monir is the co-owner of a real estate company and receives income in the form of dividends from his share ownership. Jackie is a salaried employee of the company with the usual deductions at source.

Jackie earned $76,000 in salary and $7,500 in bonuses in 2021. Monir received a $2.00 dividend per share on his 200,000 shares. Because the company is a Canadian controlled private corporate (CCPC), his dividends are non-eligible.

Jackie made $10,000 of RRSP contributions throughout 2021, and a $6,000 TFSA contribution in December. Monirs income is not considered to be earned income for determination of the RRSP contribution limit, thus his only contribution was to his TFSA of $6,000, also in December.

Monir purchased 2,000 shares of the Royal Bank at $105 early in 2021, and sold them later in 2021 for $135 per share. He also purchased 5,000 share of iShares Global Clean Energy ETF, which he later sold for a capital gain of $32,400. The ETF was held in his TFSA, while the Royal Bank shares were held in a non-registered account. Monir also incurred a small non-registered capital loss of $5,250 on some long-term bonds he had purchased.

Monir had major dental work done in 2021 amounting to $25,000. Their other medical expenses were negligible.

Part 1 - Calculate total income for federal tax purposes (line 15000) and net income (line 23600) for Monir and Jackie in 2021. For each income/deduction type, indicate the line number on the T1 form. Add lines as required to the table below. Round to the nearest dollar.

Part 2 - a. Both Monir and Jackie made their TFSA contributions in December. What would you say to them about the timing of this contribution?

Part 2 - b. Assume Monir has maxed out his TFSA. If he had withdrawn $5,000 on December 31, 2021, what would have been his TFSA contribution room as of January 1, 2022?

Part 3 - Identify 4 additional federal non-refundable tax credits the couple could claim. Identify the credit, who can claim it, and why.