Question 2: Federal Tax Payable

Amy Fuller is 62 years old. Her net income for the year 2023 is $150,000. This income consists of $148,827 from employment, $828 grossed up eligible dividends ($600 received), and $345 grossed up ineligible dividends ($300 received). Her taxable income for the year is $136,831.

Her employer deducted $17,500 in federal income tax, and maximum amounts of CPP and EI from her salary.

Amy is married to Tom (age 67). Tom is disabled and his net income for 2023 is $3,000. All of

Tom's income is from RPP.

Amy and Tom have two children Mary (age 19) and David (age 15). David has a mental infirmity, however, he does not qualify for disability credit. Mary goes to university. Amy and Tom paid $6,000 towards Mary's tuition fees and $600 for her textbooks during 2023. Mary will transfer all of her unused credits to Amy. Mary's net income for the year is $4,000.

Amy's 87-year-old infirm mother lives with them. Her net income during the year was $15,000.

Amy spends the following on medical expenses:

Amy, Tom, and David: $7,000.

Mary: $3,000.

Amy and Tom donated $900 to charities during the year (Amy's donation was $600 and Tom's donation was $300). Amy also contributed $300 to a federal political party.

Required: Calculate Amy's Federal tax payable (refund) for 2023