Time has passed and Jamies situation is ever changing. DO NOT READ THE CASE IN THE TEXT. PLEASE SEE THE CASE DETAILS BELOW and then answer the questions.

Jamie Lee Jackson is now 27 and is thrilled to have just graduated from College. She has been a full time student and also worked part time at the bakery while in school.

You have met with Jamie Lee and she has provided you with a lot of information regarding her circumstances. You are piecing it all together as you will be assisting her in completing her tax return.

While in school, Jamie received a $1,500 scholarship and opened a TFSA, putting $500 into it. The rest of the scholarship Jamie put into a new non-registered investment account, investing the funds in dividend yielding shares. Jamie has moved into another apartment with more space. Her move cost her $500 for van rental and gas. She also sadly lost her Grandmother and inherited $5,000. Jamie also put these funds into the non-registered investing account, in dividend yielding shares. Jamie has been contributing $350 per month to her RRSP which is invested in a balanced mutual fund portfolio. At the end of this calendar year, Jamie will have to start making principal payments on her student loan of $60 per month plus interest at 4% annual and she can pay more principle if she likes.

Overall, Jamie has a chequing account with $2,250 in it. Her non-registered account has $6,000 in it. She has Emergency Savings of $3,900 in a high interest savings account and her TFSA has a balance of $500. Jamie is proud to let you know that her RRSP Account has grown and now has a balance of $5,500. In fact, she was able to make a contribution of $4,200 in the past year. She still owns her car, but the value has depreciated to $3,000. Jamie remains concerned about her Student Debt which is at $10,800 but is happy to tell you that she no longer carries a credit card balance and pays it off monthly.

The following additional information has also been provided to you by Jamie.

ADDITIONAL INFORMATION:

Income: $30,600 (T4 slip)

Federal Taxes paid on income: $4,284 (T4)

Provincial Taxes paid on income: $2,142 (T4)

CPP Contributions: $1,200

Employment Insurance Premiums: $320

Tuition: $1,700

Student Loan Interest: $415

Rent: $4,320 per year

Dividends earned: $250

Interest earned: $300

QUESTIONS:

From the information you have been given, create a new Net Worth Statement for Jamie Lee (3 marks)

Complete the 2020 tax forms provided. Do not complete the Identification section (Start at STEP 2 TOTAL INCOME). Upload to the dropbox. (NOTE: half a mark deducted for each error)

T1 INCOME TAX AND BENEFIT RETURN (10 MARKS)

ONTARIO TAX FORM ON 428 for 2020 (5 MARKS)

Scan each page and upload to the dropbox.

(NOTE: Half a mark deducted for each error on the T1 or ON 428)

Given what you discover after completing Jamies tax return (depending on whether tax is owing or a refund expected), answer the following: (3 MARKS EACH)

What 3 alternative courses of action could Jamie consider? (3 marks)

Of the three alternatives you have advised Jamie she has above, which alternative would you recommend and why (3 marks)