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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 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).
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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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