TAX 221 - (LO 5 to 7) (20 Marks) Prepare a 2017 T1 Return given the following information: Complete the T1 Income Tax Return and any relevant Schedules. Name: Mr. Abraham Carter Age: 56 Years Old Province: Gross Salary from Employment $105,000 + Cash Bonus Received in 2017 $27,000 Total $132,000 Union Dues Paid by Taxpayer $405 RPP Contributions by Taxpayer $530 RPP Contributions by Employer $875 EI Withheld from Employment Cheque $836 CPP Withheld from Employment Cheque $2,564 Income Tax Withheld from Employment Cheque $33,000 T5 - Bank Interest Income Received $1,025 Withdraws from RRSP Account (T4RSP Slip)* $7,500 During the year, the taxpayer had cash flow issues and decided to cash in a portion of their RRSP in a lump sum Additional Information: Spouse: Name: Molly Carter Age of Spouse: 60 Years Old Mentally or Physically Infirm? Yes (Note: infirm, not severe enough to qualify for disability tax credit) Sources of Income: $10,500 Interest Income Attended Post Secondary Institution. 3 Full Time Months 3 Part Time Months $9,650Tuition Paid in Year * Additional Information (continued): Son: Ian Carter Age of Son: 13 Enrolled in Sports? (Ian plays Baseball)? $235 Paid for Fees Sources of Income: $0 None Monthly Cost of Bus Passes: $24 Monthly Paid Passes were purchased each month January to December. Mother-in Law: Name: Isabell Fisher Lives in a Nursing Home (Note: Mother-in-Law relies on you for support) Age of Mother-in-Law 90 Mentally or Physically Infirm? Yes (Note: infirm, not severe enough to qualify for disability tax credit) Sources of Income: $7,040 Old Age Security $2,165 CPP Payments Received $1,560 RPP Received Medical Expenses: The following expenses were incurred for the 2017 tax year: Mr. Carter $1,376 Dental Visit Spouse $760 Prescription Drugs Spouse $443 Botox Injections Son $599 Doctor Visit Donations: Registered Charity $930 $ Donated** **Assume taxpayer has donated in prior years Federal Political Party $778 REQUIRED: Prepare a 2017 T1 Return given the above information. Complete the T1 Income Tax Return and any relevant Schedules When preparing the return, assume that any tax credits that may be transferred to Mr. Carter are. For simplicity, ignore provincial taxes.

subject tax221 2017 -2018 edition

TAX 221 - Hand-in #2 (LO 5 to 7) Assessment out of 24 Marks

#1) (20 Marks)

Prepare a 2017 T1 Return given the following information:

Complete the T1 Income Tax Return and any relevant Schedules.

Name: Mr. Abraham Carter

Age: 56 Years Old Province:

Gross Salary from Employment $105,000

+ Cash Bonus Received in 2017 $27,000

Total $132,000

Union Dues Paid by Taxpayer $405

RPP Contributions by Taxpayer $530

RPP Contributions by Employer $875

EI Withheld from Employment Cheque $836

CPP Withheld from Employment Cheque $2,564

Income Tax Withheld from Employment Cheque $33,000

T5 - Bank Interest Income Received $1,025

Withdraws from RRSP Account (T4RSP Slip)* $7,500

During the year, the taxpayer had cash flow issues and decided to cash in a portion of their RRSP in a lump sum

Additional Information:

Spouse: Name: Molly Carter Age of Spouse: 60 Years Old

Mentally or Physically Infirm? Yes

(Note: infirm, not severe enough to qualify for disability tax credit)

Sources of Income: $10,500 Interest Income Attended Post Secondary Institution.

3 Full Time Months

3 Part Time Months

$9,650Tuition Paid in Year *

Additional Information (continued):

Son: Ian Carter

Age of Son: 13

Enrolled in Sports? (Ian plays Baseball)?

$235 Paid for Fees

Sources of Income: $0 None

Monthly Cost of Bus Passes: $24 Monthly Paid

Passes were purchased each month January to December.

Mother-in Law: Name: Isabell Fisher Lives in a Nursing Home (Note: Mother-in-Law relies on you for support)

Age of Mother-in-Law 90

Mentally or Physically Infirm? Yes (Note: infirm, not severe enough to qualify for disability tax credit) Sources of Income:

$7,040 Old Age Security

$2,165 CPP Payments Received

$1,560 RPP Received

Medical Expenses: The following expenses were incurred for the 2017 tax year:

Mr. Carter $1,376 Dental Visit

Spouse $760 Prescription Drugs Spouse

$443 Botox Injections

Son $599 Doctor Visit

Donations: Registered Charity $930 $ Donated**

**Assume taxpayer has donated in prior years

Federal Political Party $778

REQUIRED: Prepare a 2017 T1 Return given the above information.

Complete the T1 Income Tax Return and any relevant Schedules

When preparing the return, assume that any tax credits that may be

transferred to Mr. Carter are.

For simplicity, ignore provincial taxes.