Question
PLEASE HELP WITH RIGHT SOLUTION Complete the following personal tax case using CanTax 2021 T1 software available in Seneca MyApps: Jessie Pinkman is 42 years
PLEASE HELP WITH RIGHT SOLUTION
Complete the following personal tax case using CanTax 2021 T1 software available in Seneca MyApps:
Jessie Pinkman is 42 years old, married and has 3 children aged 2, 5 and 8 years old. She is employed as a security consultant at Los Pollos Hermanos Distribution Ltd and has an annual salary of $138,000. Her 2021 T4 is provided below. She has asked you whether she will have a federal income tax payable or refund for 2021 (let the software calculate the provincial taxes). Other information she shared with you is as follows: Her spouse's name is Alex Pinkman and was born on October 13,1985.
Her children's names and birthdates are: o Pooja Pinkman, daughter, January 10, 2013, o Juanita Pinkman, daughter, June 22, 2016, and o Ray Pinkman, son, February 18, 2019.
Pooja and Ray have a physical infirmity (hearing impairment)
Her employer paid for the $250/month underground parking spot at the companys head office. The employment income reported on her 2021 T4 does not include this amount.
Her employer gave her a $4,000 flat-screen tv as an award for her 10-year work anniversary. The employment income reported on her 2021 T4 does not include this amount. Her employer gave her a $15 company t-shirt for her to wear while working from home during the pandemic. The employment income reported on her 2021 T4 does not include this amount.
Her employer paid $2,200 in premiums for her towards her membership in the company-sponsored group disability plan. The employment income reported on her 2021 T4 does not include this amount.
Her employer allowed her to work from home from March 20th to December 31st, 2021. She incurred the following expenses while working from home: o Utilities $3,200 o Repairs and maintenance (furnace repair) $7,000 o property taxes $7,200 o house insurance $1,800 o interest on mortgage $16,000 o repainting and rewiring of work space $500 o home internet service fees $600 o home telephone monthly charges $360 o work-related long distance telephone charge (100%) $240
Jessies home has 3,000 square feet of living space. She uses 300 square feet for her work space in the home.
Jessies work space at home is used exclusively for the purpose of carrying out her employment duties and is used on a regular and continuous basis for meeting clients of Los Pollos (through WebEx and Teams)
. Jessie purchased a new desk and chair for her home office for a combined cost of $2,500.
Jessie also purchased a new Surface Book 3 laptop to use for employment purposes from home at a cost of $2,849
She earned $7,500 in interest on her investments. She received a T5 tax slip for this interest amount from Laurentian Bank
Jessie made an RRSP contribution of $12,000. She made her RRSP contribution with InvestSimple, on February 10,2022. She received an RRSP Contribution tax receipt from InvestSimple in early March 2022 for this contribution. Jessie's 2020 Earned Income was $112,000.
Jessie and her spouse did not incur any childcare expenses during the year, because her parents were able to provide all necessary child care.
She is required by her employer to use her own automobile, Jeep Cherokee, in the course of her employment. Her total automobile costs for the year, including monthly lease costs, gas, repairs and maintenance, are $8,000. She drove her car 20,000 kilometres during the year; 12,000 kilometres of this amount was for employment purposes.
Her spouse, Alex Pinkman, had employment income in 2021 of $5,000 from her part-time job. Jessie was enrolled as a part-time student for 8 months in 2021 at Torontos preeminent post-secondary institution, Seneca College, and took two courses during the year at a cost of $4,600.
In addition to the donations reported on her T4, Jessie made charitable donations of $3,400 to the United Way in 2021.
Jessie incurred medical expenses of $5,600 for her family for the 12-month period ending on September 30, 2021. This was the 12-month period ending in 2021 for which she incurred the highest amount of medical expenses. For the 2021 calendar year, her medical expenses for her family totaled $5,200
. Regarding medical expenses in the CanTax Assignment, you must complete the T1-MED form. o Date of Payment: any date in 2021 o Name of Patient: Jessie Pinkman o Description of Medical Expenses: Prescription drugs o Amount Paid: 5,600 REQUIRED: Use CanTax T1 2021 software to complete Jessie Pinkmans 2021 personal tax return. The return you submit should include balances on all relevant lines and forms required to determine Jessies: a. Employment Income (8 marks) b. Total Income (2 mark) c. Net Income (8 marks) d. Taxable Income (2 mark) e. Federal tax liability (6 marks) f. Non-refundable tax credits (20 marks) g. Federal tax payable or refund (4 marks) Let the software calculate provincial income tax. NOTE: When you have completed Jessie Pinkman's T1 in CanTax T1 2021, you must print and submit a pdf of the tax return. Do not print or submit any provincial tax forms.
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