Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Sachin has always lived in Quebec and is ready to file his 2 0 2 3 personal income tax returns. He feels that he is

Sachin has always lived in Quebec and is ready to file his 2023 personal income tax returns. He feels that he is heavily taxed and has stated that he pays 50% of his earnings in taxes. You believe that this is an exaggeration and will help with his tax calculations below based on the information he has provided.
Information that Sachin has provided:
-Gross salary in 2022 $100,000
-Gross salary in 2023 $112,900
-Gross salary in 2024 $121,200
-Bonus in 2023 $17,000
-Sachin does not participate in a company pension plan
-Sachin always makes the maximum RRSP contribution each year on March 1st
-Sachin always makes the maximum TFSA contribution each year on March 1st
-Sachin has annual professional dues of $900 that he pays to the Barreau du Qubec (professional order of lawyers)
-Canadian eligible dividends of $1,000(gross-up rate is 38%)
-Sold 200 Shopify Inc. shares for $102/share in November 2023(bought 400 shares in Shopify when they were at $54/share)
-Had a capital loss of $2,000 from a previous year that he hoped to apply against his capital gain
a) In calculating Sachins 2023 personal income tax returns, what is his Total Income? b) In calculating Sachins 2023 personal income tax returns, what is his Taxable Income? d) What is Sachins average tax rate for 2023? e) What is Sachins marginal tax rate for 2023? f) What if Sachin earned a special performance award of $3,000 in 2023 what would be the taxes payable on this cash award?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Smart Approach

Authors: Mary Carey, Jane Towers Clark, Cathy Knowles

1st Edition

0199587418, 978-0199587414

More Books

Students explore these related Accounting questions

Question

Explain the various employee benefit laws.

Answered: 3 weeks ago

Question

Describe the premium pay benefit practice.

Answered: 3 weeks ago