Question
She is required by her employer to use her own automobile, Jeep Cherokee, in the course of her employment. Her total automobile costs for the
costs, gas, repairs and maintenance, are $8,000. She drove her car 20,000 kilometres
during the year; 12,000 kilometres of this amount was for employment purposes.
Her spouse,
Alex Pinkman, had employment income in 2021 of $5,000 from her part-time
job
.
Jessie was enrolled as a part-time student
for 8 months in 2021
at Toronto's preeminent
post-secondary institution, Seneca College, and took two courses during the year at a cost
of $4,600.
In addition to the donations reported on her T4, Jessie made charitable donations of
$3,400 to the United Way in 2021.
Jessie incurred medical expenses of $5,600 for her family for the 12-month period ending
on September 30, 2021. This was the 12-month period ending in 2021 for which she
incurred the highest amount of medical expenses. For the 2021 calendar year, her
medical expenses for her family totaled $5,200.
Regarding medical expenses in the CanTax Assignment, you must complete the T1-MED
form.
Date of Payment: any date in 2021
o
Name of Patient: Jessie Pinkman
o
Description of Medical Expenses:
Prescription drugs
o
Amount Paid: 5,600
o
REQUIRED: Use CanTax T1 2021 software to complete Jessie Pinkman's 2021 personal tax
return. The return you submit should include balances on all relevant lines and forms required
to determine Jessie's:
a.
Employment Income (8 marks)
b.
Total Income (2 mark)
c.
Net Income (8 marks)
d.
Taxable Income (2 mark)
e.
Federal tax liability (6 marks)
f.
Non-refundable tax credits (20 marks)
g.
Federal tax payable or refund (4 marks)
Let the software calculate provincial income tax.
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