QUESTION 10 Cavan Biggio has come to you for help in calculating his net federal tax on line 42000 of his 2021 personal income tax return. This following information may be of assistance: Cavan's net pay received from his job as an employee is calculated as follows: Gross salary received 65,000 Less: CPP withheld from paycheques (3,166) Less: El withheld from paycheques (890) Less: income taxes withheld from (7,000) paycheques Net pay received 53,944 For the $3,166 of CPP withheld, $2,876 is a non-refundable tax credit and $291 is a deduction from total income for CPP enhanced contributions. For the $890 of El withheld, the full amount is a non-refundable tax credit Cavan has already correctly calculated his taxable income on line 26000 of his income tax return as follows: Employment income 65,000 Total income (line 15000) 65,000 Deduction for CPP enhanced contributions (291) Net and taxable incomes (lines 23600 and 26000) 64,709 Using the above information, calculate Cavan Biggio's net federal tax on line 42000 of his 2021 personal income tax return. Round your answer to the nearest dollar. (Hint: the chapter 10 slides plus assignment problem 10-0 will greatly assist you with this question). **IMPORTANT: do not include the dollar sign ($) in your answer. For example, if your answer is $10,000, please write it as 10000 or 10,000. Do not write it as $10,000** Some tips to help you: Your first step is to calculate federal tax using the federal tax rate brackets. Ensure you apply the brackets properly. Your next step is to offset federal tax with federal non-refundable tax credits. The following credits must be calculated for this question: The basic personal amount O CPP contributions o El premiums o The employment amount Do not calculate Cavan's income tax refund or balance due (you can do this if you want, but its beyond the scope of the question). You're only being asked to calculate net federal tax. Not income tax refund or balance due. Ensure you understand what's being asked. QUESTION 10 Cavan Biggio has come to you for help in calculating his net federal tax on line 42000 of his 2021 personal income tax return. This following information may be of assistance: Cavan's net pay received from his job as an employee is calculated as follows: Gross salary received 65,000 Less: CPP withheld from paycheques (3,166) Less: El withheld from paycheques (890) Less: income taxes withheld from (7,000) paycheques Net pay received 53,944 For the $3,166 of CPP withheld, $2,876 is a non-refundable tax credit and $291 is a deduction from total income for CPP enhanced contributions. For the $890 of El withheld, the full amount is a non-refundable tax credit Cavan has already correctly calculated his taxable income on line 26000 of his income tax return as follows: Employment income 65,000 Total income (line 15000) 65,000 Deduction for CPP enhanced contributions (291) Net and taxable incomes (lines 23600 and 26000) 64,709 Using the above information, calculate Cavan Biggio's net federal tax on line 42000 of his 2021 personal income tax return. Round your answer to the nearest dollar. (Hint: the chapter 10 slides plus assignment problem 10-0 will greatly assist you with this question). **IMPORTANT: do not include the dollar sign ($) in your answer. For example, if your answer is $10,000, please write it as 10000 or 10,000. Do not write it as $10,000** Some tips to help you: Your first step is to calculate federal tax using the federal tax rate brackets. Ensure you apply the brackets properly. Your next step is to offset federal tax with federal non-refundable tax credits. The following credits must be calculated for this question: The basic personal amount O CPP contributions o El premiums o The employment amount Do not calculate Cavan's income tax refund or balance due (you can do this if you want, but its beyond the scope of the question). You're only being asked to calculate net federal tax. Not income tax refund or balance due. Ensure you understand what's being asked
