Question
Mr. Martin Bowles is 63 years old and is employed by, Dominion Brass, a large public company. During 2020, his Net Income and Taxable Income
Mr. Martin Bowles is 63 years old and is employed by, Dominion Brass, a large public company.
During 2020, his Net Income and Taxable Income was correctly calculated as $139,500.
Taxable income includes qualifying pension income from a former employer in the amount of $5,000.
His employer withheld the following amounts from his salary during 2020:
EI Premiums 858
CPP Contributions 2,594
Mr. Bowles is married and has two children:
Sally, Martins spouse, has 2020 income of $3,450.
Marie is 14 years old and has income of $2,300. All of this income resulted from the investment of rewards that she has received for science projects.
Ellen is 19 years old and attends university on a full-time basis for 8 months during 2020. Martin pays her tuition costs of $9,800, as well as the cost of textbooks and supplies which costs $1,500. As Ellen has net income of $12,809, she has agreed to transfer all of her education related tax credits to Martin.
The familys 2020 medical expenses, all paid for by Mr. Bowles, are as follows:
Martin $ 2,500
Sally 1,850
Marie 1,600
Ellen 6,540
Total $12,490
During 2020, Mr. Bowles makes donations to registered charities of $1,400.
Required: Calculate Mr. Bowles minimum 2020 Federal Tax Payable. Show all of your calculations
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