Mr. Smead has Net Income for Tax Purposes of $85,000, none of which is employment or income from self-employment. He lives in a residence that he has owned for many years. He does not currently have a spouse or common law partner. However, he has custody of his 10 year old son who lives with him. Also living with him is his 68 year old, widowed mother. She has a physic infirmity however it is not sufficiently severe for her to qualify for the disability tax credit. Mr. Smeads son has no income during the year. His mother had OAS benefits and pension income which totaled $18,500 during the year.

Instructions:

• Indicate the maximum 2020 federal personal tax credits available to offset preliminary taxes.

Mr. Sharp has Net Income for Tax Purposes of $72,350, none of which is employment income or self-employment income. He lives with his common-law partner and her three children from a previous relationship. The children are aged 13,15 and 20. The 20 year old child is dependent because of a physical disability. However, the disability is not eligible for the disability tax credit. Neither the common law partner nor any of the children have any source of income.

Instructions:

• Indicate the maximum 2020 federal personal tax credits available to offset preliminary taxes.