Question

Mr Patel is employed by a large public corporation and for 2018 his salary was $66,000. He was a member of the company's pension plan and his contributions were matched by his employer. He contributed $800.84 to the plan and the amount shown on his T4 slip along with an entry of $1,601.68 in box 52 representing his pension adjustment. Union dues were deducted of $800.

During 2018, his employer withheld the following amounts from his compensation:

EI Premiums $858.22

CPP Contributions $2,593.80

Income tax deducted $8,000

He also made RRSP contributions of $100 a month for the year and had enough contribution room.

Last year he had non capital losses of $1,200 that he could not use in 2016 and was carryforward to 2018.

Mr. Patel owns 1000 preferred shares of Iron works shares, a publicly- traded taxable Canadian corporation and received four dividend payments of $72 and sold his shares and received proceeds of disposition of $26 per share and his adjusted cost base for the shares were $20. Mr. Patel also received interest payments totaling $165 based on his balance in his savings account at the same bank and had carrying charges of $95.

Mr. Patel is the sole provider for the family and Mameet his wife works part time and had a net income of $7,800. They have two young children Sanjay and Mahesh aged seven and Eleven and paid medical expenses of $2,650 in 2018. He also contributed to various charities in the amount of $450 and his wife contributed $80 to local charities.

Required:

Determine Mr, Pate's total income, Net income, Taxable Income and the Net federal tax owing for refund for 2018 not including provincial taxes.