Personal Tax Return Assignment Required: 1. Calculate Homers NIFTP, Taxable income, federal tax payable (provincial not needed), showing all work. 2. Prepare Homers T1 by hand. Using a tax preparation software is plagiarism and would receive a grade a zero. You should include the T1 jacket and all the necessary federal schedules. You do not need to prepare any provincial schedules or compute provincial taxes. 3. Your work can be handwritten or typed. Your textbook provides good examples of what the computation resembles, but not necessarily the explanation (yours should be more detailed). 4. This is a group assignment. See Information on Group Assignments posted. Remarks: Most of the information needed for this assignment is in the textbook and / or recorded lectures and discussions. There are practical and procedural information necessary for this assignment, however, that the students must obtain through self-directed research. No further instructor clarification is planned, unless you believe you have identified errors. Should you believe any information needed for your work is missing, identify what that information is and make reasonable assumptions. Taxpayers Name: Homer Simple, age 77 Homers wife Marge Simple is 68. Her only source of income is interest of $1,000. Marges father Abe, is 92. Abe and his wife Mona (see below) live with and are supported by Homer. Abe has Pension income of $16,200. Marges parents are divorced and Abe remarried a few years ago. Abes wife, Mona, is physically inform and has net rental income of $6,000. Abe and Mona, who lived outside of Canada for many decades in their youth, do not qualify for OAS or GIS. Homers Income Information: Employment income: $100,000 o CPP contribution: Nil o EI contribution: $856.36 o Taxes withheld: $21,000 Pension income: $20,000 Old Age Security: 7,200 Medical expenditures: o Homer - $1,000 prescription drugs, $600 physiotherapy, acupuncture $401, Chinese herbal medicine $399. o Marge prescription sunglasses $250, routine teeth cleaning $300. During the year, Marge flew to Thailand to obtain medically necessary procedures that would have costed more in Canada. She spent $2,000 on the medical procedure, $1,800 for travel costs and $280 to purchase insurance for out-of-country medical coverage. o Abe doctor-prescribed vitamins $200 and hearing aid $500. o Mona wheelchair $2,000. Charitable Donations: Donations to Religious Entities: Homer: $6,000 to a Mosque. Simple: $7,000 to a Temple. Abe: $1,700 to a Synagogue. Mona: $270 to a church. All of these organizations are registered charities and issued appropriate official receipts. In addition all members of this family are active in giving their time and energy. Homer volunteers at the SPCA animal shelter (a registered charity) incurring out-of-pocket costs of $650 (gas, parking and Uber rides with valid receipts) Marge participates at a local hospitals bake sale. Marges muffins and other tasty baked goods raised $150 and the cost of the ingredients to Marge is: $40. Political Donations: Homer made two political donations during the year. o $2,000 to a registered political party in the USA o $890 to the leader of the Green Party, and $10 for a one-year Green Party membership due (total $900). Other Information: Homer, Marge and their extended family lived at a home they owned until several years ago. Homer lost confidence in real estate and they sold their family dwelling in 2019 and were renting for a while. Early this year Marge finally convinced Homer to get back into the market and they bought a house where the family now happily lives in. The house sold in 2019 was registered in Marges name while the one bought this year is in Homers name. At his age, Abe is as spry as ever. To be prudent though, Homer and Marge decided to renovate one of the bathrooms and install a wheel-in shower at a cost of $4,568. The bathroom is currently being used by the whole family, but it will be able to help Abe or anyone with a mobility issue should the need arise.