Your client (individual taxpayer) is 56 years old in 2020 She has the following information specific to 2020 (unless otherwise specified) She is married Her spouse is 58 and had income of $9,000 Her salary received in the year was $85,000 She also received a $2,000 bonus at the beginning of the year (which related to 2019) She had employment insurance premiums of $856 and CPP contributions of $2,898 withheld at source She earned $10,000 in interest income from Canadian government bonds She did not pay any tax instalments as she her income tax is withheld at source She made charitable donations to 4 different charities for $200 each She had $16,000 in rental revenue She paid $4,000 maintenance on the rental property and mortgage interest of $2,500 The total CCA taken on the property was $1,300 She also had a taxable capital gain of $3,750 and an allowable capital loss of $2,200 Your clients medical expense receipts from Jan 1 Dec 31 were $1,100 Her daughter is a student at a Canadian university The tuition fees paid by the daughter was $7,400 Assume that the daughter has no income so she will not be claiming the tuition tax credit The maximum will be transferred to the parent (your client) Her son is 25 and lives with them They have been taking care of him since his accident at 17 Her son has earned some interest income of $5,000 Required Calculate the taxpayers minimum federal tax payable for 2020 Your client will then compare this to the amount of taxes withheld (by the employer this amount has not been provided in the question) and any difference will need to be paid

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Posted on Aug 04, 2021

Your client (individual taxpayer) is 56 years old in 2020. She has the following information specific to 2020 (unless otherwise specified): She is married. Her

Your client (individual taxpayer) is 56 years old in 2020.

She has the following information specific to 2020 (unless otherwise specified):

She is married. Her spouse is 58 and had income of $9,000.
Her salary received in the year was $85,000. She also received a $2,000 bonus at the beginning of the year (which related to 2019).
She had employment insurance premiums of $856 and CPP contributions of $2,898 withheld at source.
She earned $10,000 in interest income from Canadian government bonds.
She did not pay any tax instalments as she her income tax is withheld at source.
She made charitable donations to 4 different charities for $200 each.
She had $16,000 in rental revenue. She paid $4,000 maintenance on the rental property and mortgage interest of $2,500. The total CCA taken on the property was $1,300.
She also had a taxable capital gain of $3,750 and an allowable capital loss of $2,200.
Your client’s medical expense receipts from Jan 1 – Dec 31 were $1,100.
Her daughter is a student at a Canadian university. The tuition fees paid by the daughter was $7,400. Assume that the daughter has no income so she will not be claiming the tuition tax credit. The maximum will be transferred to the parent (your client).

Her son is 25 and lives with them. They have been taking care of him since his accident at 17. Her son has earned some interest income of $5,000.

Required

Calculate the taxpayer’s minimum federal tax payable for 2020. Your client will then compare this to the amount of taxes withheld (by the employer; this amount has not been provided in the question) and any difference will need to be paid.