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Please solve this 5 cases. please use the Canadia Tax system as this assignment is from a canadian College. thank you Assignment Problems Solutions to
Please solve this 5 cases. please use the Canadia Tax system as this assignment is from a canadian College. thank you
Assignment Problems Solutions to Assignment Problems (APs) are available to instructors only. AP 4-1 (Personal Tax Credits-Five Cases) In each of the following independent cases, determine the maximum amount of 2021 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal income tax payable by the individuals. In all cases, the individual's net income is equal to his or her taxable income. Ignore, where relevant, the possibility of pension income splitting. Unless otherwise stated, assume that each individual is less than 65 years old. A calculation of tax payable is NOT required, only the applicable income tax credit base and the credit amount applied against federal income tax payable. 1. Cammy Tarbell has net income of $96,500, all of which is employment income. Her employer has withheld maximum El and CPP contributions. She is married to Bob Tarbell, who has net income of $8,650. They have four children ages 3, 5, 7, and 9. All of the children are in good health and none of them have any income during the current year. 2. Scotty Severa has been divorced for a number of years. Because his former wife is an airline pilot who travels extensively, he has been awarded custody of their three children. The children are aged 7, 10, and 15 and they are all in good health. Scotty's net income is $71,400, all of which is spousal support payments. The two younger children have no income of their own. The 15 year old has income from part-time jobs of $8,640. 3. Donald Preble has net income of $126,325, all of which is rental income. His spouse, Donna, has net income of $6,340.Their daughter, Diane, is 26 years old and has a mental disability. While the disability is not severe enough to qualify for the disability tax credit, she has no income during the current year and continues to live with Donald and Donna. 4. Bibi Spillman is 68 years old. Her net income totals $65,420 and is made up of OAS payments of $7,400 and pension income of $58,020 from a former employer. Her spouse is 62 years old and has net income of $6,250. 5. Clarice McBryde has net income of $132,400, all of which is employment income with the exception of a deduction for CPP of $290. Her employer has withheld the maximum El and CPP contributions. She and her husband, Moishe, have two children aged 11 and 13. Moishe and the children have no income of their own during the current year. The 13-year-old child was severely injured in a car accident two years ago and qualifies for the disability tax credit. No amount was paid for attendant care for this child during the current year. Clarice spent $12,500 installing wheelchair ramps to improve access to various parts of the family residence. She also spent the following on dental fees and fees for various medical practitionersStep by Step Solution
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