Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ms. Thunderchild, a single parent, supports her three children, ages 5, 8, and 10, who live with her. Ms. Thunderchild paid the following amounts in
Ms. Thunderchild, a single parent, supports her three children, ages 5, 8, and 10, who live with her. Ms. Thunderchild paid the following amounts in respect of care of the children during 2016: Babysitting services _ local independent person during her working days Babysitting during evenings and weekends to enable Ms. Thunderchild to go out $12,000 with friends 1,100 Ms. Thunderchild provides you with her sources of income for tax purposes Employment income $42,000 5,000 3.500 50,500 (4.300) 46,200 2,000 9,600 15,000 7,000 Gross salarv Stock option Low-interest loan benefit Registered pension plan contribution Share of partnership income from a retail store Rental of a basement apartment Support payments received in respect of the children Interest income Required (i)Determine the maximum child-care deduction for Ms. Thunderchild for 2016. Show all parts of the calculation. Explain why you excluded any of the above amounts in your calculation for (i), above. (ii) Ms. Thunderchild, a single parent, supports her three children, ages 5, 8, and 10, who live with her. Ms. Thunderchild paid the following amounts in respect of care of the children during 2016: Babysitting services _ local independent person during her working days Babysitting during evenings and weekends to enable Ms. Thunderchild to go out $12,000 with friends 1,100 Ms. Thunderchild provides you with her sources of income for tax purposes Employment income $42,000 5,000 3.500 50,500 (4.300) 46,200 2,000 9,600 15,000 7,000 Gross salarv Stock option Low-interest loan benefit Registered pension plan contribution Share of partnership income from a retail store Rental of a basement apartment Support payments received in respect of the children Interest income Required (i)Determine the maximum child-care deduction for Ms. Thunderchild for 2016. Show all parts of the calculation. Explain why you excluded any of the above amounts in your calculation for (i), above. (ii)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started