Problem 3 Taxable Income/Tax Payable - Individual

The following is a series of independent cases. Each case involves various assumptions as to the amount and type of income earned by Ms. Remy Tates during 2020, as well as to other information that is relevant to the determination of her 2020 Tax Payable. Ms. Remy Tates Net Income For Tax Purposes is equal to her Taxable Income in all Cases.

REQUIRED. In each Case, calculate Ms. Remy Tates minimum federal Tax Payable (after credits) for 2020.

Show all your work for part marks and clearly specify the name of each credit being claimed.

a. Remy is 43 years old and has net rental income of $97,300. Her husband died last year. She has two children. Mark is 15 and is physically infirm, but not sufficiently to qualify for the disability tax credit. He has income from part time work as a graphic artist of $4,800. The other child, Sandy, is 10 and is in good health and has no income during the current year

Minimum Federal Tax Payable ____________________________

b. Remy is 31 years old, has employment income of $83,000, and makes contributions of $3,000 to registered charities. She is not married and has no dependants.

Minimum Federal Tax Payable ________________

c. Levy is 58 years old and has employment income of $87,600. Her common-law partner is 48 years old and has income of $8,260 They have an adopted child who is 19 years old and lives at home. Levy and her partner have medical expenses of $4,600. Medical expenses for the son total $10,300. The son has Net Income For Tax Purposes of $4,300.

Minimum Federal Tax Payable