Question 4-A

Clint Hanger, age 71, is retired but still collecting very large amounts of company pensions from past employers. His common-law wife, Betty Boop, is a sprite 80 year old who is still enrolled in university courses. While she makes considerable less income, just the old age security and a small widow's pension from the company that employed one of her late husbands, she still insists on paying for all her own medical expenses and charitable donations to her favorite charities.

Required:

Based on the above information, and in a concise point form format, explain what this couple can do regarding how their income, expenses and credits are claimed in their tax returns so that they can reduce their combined family tax burden.