Calculate the net federal taxpayable to the nearest dollar,given the followinginformation:
Federal tax rates for 2018 (from CRA's website www.canda.ca)
15% on the first $46,605 of taxable income, +20.5% on the next $46,603 of taxable income (on the portion of taxable income over 46,605 upto $93,208), +
26% on the next $51,281 of taxable income (on the portion of taxable income over $93,208 upto $144,489), +29% on the next $61,353 of taxable income (on the portion of taxable income over 144,489 upto $205,842), +33% of taxable income over $205,842.
Total Income ________________
(-) Tax Deductions ________________
Net Income ________________
+/- other capital gains/losses
- ½ capital gains ________________
Taxable Income ________________
Basic Federal tax payable ________________
(-) Tax Credits ________________
Net Federal Tax Payable ________________
What is the Average Federal Tax Rate in this case? ___________%
Employment Income $125 000
Interest earned on investments $12 000
Capital gains income on sale of shares $20 000
Capital gains income on sale of principal residence $50 000
Inheritance from Uncle Cliff $25 000
RRSP Contributions made throughout the year $15 000
Basic Personal Amount 11809 x 15% $1 771
Tuition 5000 x 15% $750
Child Care Expense $12 000