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 $1$st

$-$Sachin always makes the maximum TFSA contribution each year on March $1$st

$-$Sachin has annual professional dues of $$900$ that he pays to the Barreau

du Qu$$bec $($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

$6$

$$ May not be copied or duplicated

without the permission of the owner.

a$)$ In calculating Sachin$$s $2023$ personal income tax returns, what is his Total Income?

Show calculations for $2023$ Total Income: $(2$ marks$)$

b$)$ In calculating Sachin$$s $2023$ personal income tax returns, what is his Taxable Income?

Show calculations for $2023$ Total Income: $(2$ marks$)$

c$)$ Based on the Combined Federal and Quebec income tax brackets for $2023,$ what is

Sachin$$s Total Taxes Payable? Based on Table A$,$ use the following template. $(1$ mark$)$

first $$49,275$

over $$49,275$ up to $$53,359$

over $$53,359$ up to $$98,540$

over $$98,540$ up to $$106,717$

over $$106,717$ up to $$119,910$

over $$119,910$ up to $$165,430$

over $$165,430$ up to $$235,675$

over $$235,675$

Total taxes

d$)$ What is Sachin$$s average tax rate for $2023?(\mathrm{.}25$ marks$)$

Average tax rate for $2023$

e$)$ What is Sachin$$s marginal tax rate for $2023?(\mathrm{.}25$ marks$)$

Marginal tax rate for $2023$

Combined Federal and Quebec tax brackets and tax rates for $2023$

Taxable Income Other Income rates

$7$

$$ May not be copied or duplicated

without the permission of the owner.

f$)$ What if Sachin earned a special performance award of $$3,000$ in $2023$ what would be the

taxes payable on this cash award? $(\mathrm{.}25$ marks$)$

Marginal tax rate for $2023$

g$)$ What is the maximum RRSP contribution in general that is permitted for $2023$ and does

Sachin reach this limit$?$ See Table E $(\mathrm{.}5$ marks for $\mathrm{.}25$ marks each$)$

Maximum RRSP contribution limit for

$2023$

Yes or No

h$)$ If Sachin contributed over his maximum RRSP contribution limit$,$ what would be the

consequences? $(\mathrm{.}25$ marks$)$

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