Single Father's Tax Situation Ever since his wife's death, Eric Armano has faced difficult personal and financial circumstances. His job provides him with a fairly good income but requires him to hire a caregiver for his daughters, ages 8 and 10, nearly 20 days a month. This requires him to use in- home child care services that consume a large portion of his income. Since the Armanos live in a small apartment, this arrangement has been very inconvenient. Although Eric has an investment fund for his daughter's education and for his retirement, he has not sought to select investments that offer tax benefits. Overall, he needs to ICH)k at several aspects of his tax-planning activities to find strategies that will best serve his current and future financial needs. Eric has assembled the following information for the current tax year: Earnings from wages: $47,500 Interest on GIC: $125 RRSP deduction: $2,000 Savings account interest: $65 income tax at source: $7,043 Total non-refundable tax credit amounts: $13,200 Child-care deduction: $6,300 Elling status: Head of household

Questions 1. Is Eric typical of many people in our society with regard to tax planning? Why or why not? a. What additional actions might Eric investigate regarding taxes and personal financial planning? 2. Calculate the following: a. What is Eric's 2019 federal taxable income? (Refer to@Exhibit 31). b. What is his total 2019 federal tax liability? What is his average 2019 federal tax rate? c. Will Eric receive a tax refund or owe additional taxes to the federal government for 2019?