Question 1 (34 points)

For each of the following income types and for each family member (if applicable):

• Itemize all amounts of this type (indicate who received it and how much);
• Determine how much of this income, if any, is required to be reported on a tax return;
• For each taxpayer, state the line(s) on the tax return or forms/schedules on which this should be reported an the total amount to be reported;
• If any item is not reportable for tax purposes, write "nil" and explain the reason why.

Group sickness or accident insurance plan benefit: (3 points)

WCB benefit: (3 points)

Inheritance: (3 points)

Remuneration from employer (salaries, wages, taxable benefits, etc.): (9 points)

Strike pay: (3 points)

Retiring allowance: (3 points)

Scholarship: (3 points)

Capital gain from sale of the house: (4 points)

Odd jobs: (3 points)

Question 2 (6 points)

Who should report the bank interest of $25 that each of the children received? Explain why.

Chelsea: (2 points)

Wayne: (2 points)

Derrick: (2 points)

Question 3 (4 points)

Who should report the $2,000 Jeremy had taken out of the RRSP that Sonja had contributed? And who can claim the withholding tax on the T4RSP? Explain why. (4 points)

Question 4 (38 points)

Jeremy, Sonja and Derrick are all filing returns this year. For each of the following expense types:

• Itemize the claim (list all expenses of that type).
• State the total dollar amount, if any, which may be claimed and explain.
• Indicate which forms or schedules need to be completed for the claim.
• State the line number where the claim should be entered.
• Indicate on whose return it must be claimed: Jeremy, Sonja, or Derrick (if both Sonja and Jeremy are eligible to claim an item, write "either"

If any item cannot be claimed for tax purposes, explain why.

Child care: (3 points)

Moving expenses: (10 points)

Spousal RRSP contribution: (4 points)

Retiring allowance transfer to RRSP: (3 points)

Charitable donation: (3 points)

Disability supports: (3 points)

Home accessibility expenses: (3 points)

Medical expenses: (3 points)

Home buyers' amount: (3 points)

Union dues: (3 points)

Question 5 (8 points)

For each of the following boxes on Jeremy's T4 slip, please answer:

• What does this box represent?
• On which line will it go on the tax return? If it is not to be entered on the tax return, state the reason why.

Box 38: (2 points)

Box 39: (2 points)

Box 66: (2 points)

Box 67: (2 points)

Question 6 (4 points)

Calculate Derrick's total federal tuition amount.

• How much will he use on his return?
• What form or schedule does he have to complete?
• What can he do with his unused amount, if any? Explain your answer.

Question 7 (6 points)

Assume Jeremy will claim the children on his tax return. What is the maximum amount Jeremy can claim for each of the following? State the line number on which it should be claimed.

Canada caregiver amount for children under 18 years of age: (3 points)

Disability amount transferred from a dependant (not a spousal transfer): (3 points)