Question 4-B

Sally comes to you for some free tax advice, because 2021 was a year of change and turmoil for her. For the first time, she was not gainfully employed for the whole year, having been laid off earlier in the year.

Nevertheless, the year 2021 was a big financial success consisting of one-time taxable capital gains and some great investment income. Having turned 65 in the year, she also started to collect well over $100,000 in pension income coming from her ex-employer.

However, to keep busy, she found a small part time employment helping children cross the street. As she only earned a modest $3,400, the employer did not have to make any withholdings from this income.

After living aprat for many years, her divorce from her former husband became finalized in 2021. Sally legally obtained full custody of her two childre, aged 12 and 20 in 2021. With her divorce came a very nice lump sum payment for all the years of past unpaid child support. With this new found wealth, for the first time in her life, in 2021, Sally bought a new condo costing $250,000 and paid for it in cash.

Her 12-year son, Billie, while not certified with a disability, he is in fact conseidered by his doctors to be infirm. In spite of his condition, Billie earned net income of $2,500 in 2021.

Her other son, 20-year old Willie, is in good health and was in full time attendance at Concordia university, that confirmed he attended for an 8-month period in 2021. Sally has paid Willie's modest government subsidized tuition fees of only $2,000. In 2021, Willie had a summer employment income of $4,500 and received scholarships of $10,000. He has agreed to transfer any available education related tax credits to Sally.

Also living with Sally is Popi, her 80-year old father who has a physical infirmity and whose net income for tax purposes in 2021 was $8,000.

Sally's mother, 75-year old Maddie, is also dependant on her, however, she has to live in a private-care facility because she is disabled due to being blind and bed ridden. Her mother's net income consists only of $6,765 from the federal Old Age Security pension.

Sally adopted a foreign child, Maddox, who is 4 years old. In January 2021, the adoption papers were finalized. Adoption court costs, lega costs, and administrative costs incurred for the adoption were $18,400. Unfortunately, soon after arriving in Canada, Maddox was diagnosed to have Down's syndrome that is considered to be an infirmity.

Sally paid $1,000 for Billie, her 12-year old son, to attend a special hockey school.

During 2021, Sally donated $1,800 to a variety of registered charities as well as another $500 to her favourite federal political party candidate.

During 2021, Sally paid for the following eligible medical costs:

For herself: $850

For her adopted child-Maddox: $1,480

For her father-Popi: $3,940

Required:

Assuming that Sally's 2021 Division B's income is correctly calculated at $217,150 in a concise point form schedule, do all the calculations required to arrive at her minimum federal tax payable for 2021.

You must specifically identify the type of credit and the name of the individuals for whom that credit is being claimed and any potential credit that resulted in a Nil credit amount.