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Please help me to solve these questions. I have answers but do not know the solution. a. Given the marginal tax information in the table

Please help me to solve these questions. I have answers but do not know the solution.

a. Given the marginal tax information in the table below, indicate the after tax monthly income Aman should expect from his retirement income? Aman expects $14,060 annual income from the combination of his CPP and OAS and $14,000 from his RRIF.

Simplified Marginal Tax Table

Beginning of range

End of range

Tax at start of range

Marginal rate

-

to

12,000

-

0%

12,000

to

20,000

-

15%

20,000

to

48,000

1,200

22%

48,000

to

95,000

7,360

30%

95,000

to

148,000

21,460

40%

148,000

to

210,000

42,660

45%

210,000

+

above

70,560

50%

Correct Answer:

2,091 1

b. Use the the marginal tax information in the table below to calculate the after tax monthly income Kelly should expect from her retirement income. Kelly expects $13,775 annually from CPP, $7,907 annually from OAS, and $118,000 from her RRIF. Assume that her OAS will be clawed back on any income above $76,000.

Correct Answer:

7,967 1

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