Michael and Rebecca Smith have been married for 25 years. In late February 2020, Michael and Rebecca
Question:
Michael and Rebecca Smith have been married for 25 years. In late February 2020, Michael and Rebecca comes to your office with their tax information for 2019. Rebecca works for Seneca College as a professor, which has excellent health and dental plan that reimburses 100% of all medical expenses. Michael is retired and volunteers with the local library.
FIELD | INPUT |
SIN | 527-000-129 |
TITLE | Mrs. |
FIRST NAME | Rebecca |
LAST NAME | Smith |
ADDRESS | 415 Homewood Ave |
CITY | Toronto |
PROVINCE | Ontario |
POSTAL CODE | M4W 2K3 |
HOME PHONE | 506-636-5997 |
BIRTHDATE | October 25, 1962 |
GENDER | Female |
MARITAL STATUS | Married |
LANGUAGE | English |
ADDITIONAL INFO: |
|
FIELD | INPUT |
SIN | 527-000-079 |
TITLE | Mr. |
FIRST NAME | Michael |
LAST NAME | Smith |
ADDRESS | 415 Homewood Ave |
CITY | Toronto |
PROVINCE | Ontario |
POSTAL CODE | M4W 2K3 |
HOME PHONE | 506-636-5997 |
BIRTHDATE | August 12, 1950 |
GENDER | Male |
MARITAL STATUS | Married |
LANGUAGE | English |
ADDITIONAL INFO: |
|
Michael & Rebecca have 2 children:
Name | Relationship | Birthday |
Anna Smith | Daughter | March 12, 2008 |
Roger Smith | Son | April 26, 2003 |
Additional information regarding the children.
- Michael & Rebecca paid for childcare for Anna. See table 5.
All joint investment income should be split 50/50
Table 1 - T4A (OAS) Michael | Box | Amount |
Taxable Pension Paid | 18 | 7,100.00 |
Income Tax Deducted | 22 | 710.00 |
Table 2 - T4A (P) Michael | Box | Amount |
Retirement Benefit | 14 | 8,800.00 |
Taxable CPP Benefits | 20 | 8,800.00 |
Income Tax Deducted | 22 | 880.00 |
Number of months - retirement | 23 | 12 |
Table 3 - Donor | Charitable Donation Receipt | Amount |
Michael | United Way | 600 |
Michael | Art Gallery of Ontario | 350 |
Table 4 - RRSP Contribution | Company | Amount |
Rebecca | ||
July 1, 2019 | Scotiabank | 8,000.00 |
Feb 1, 2020 | BMO | 1,500.00 |
Table 5 - Child Care Receipt | Paid By | Paid To | SIN | Amount |
Babysitting - Anna | Michael & Rebecca | Judith Johnson | 527-000-329 | 8,000.00 |
Table 6 - RC62 Rebecca | Box | Amount |
Total Benefits paid | 10 | 1,440 |
Submissions:
- Submit a summary of the following information in table form (not the software print-out):
- The net income for John & Ann
Briefly explain the CRA's rules with respect to the deductions from total income to arrive at net income. In your explanation, refer to the specific calculation for John & Ann.
The non-refundable tax credits for John & Ann
Briefly explain the concept of non-refundable tax credits. In your explanation, refer to the specific calculation for John & Ann.
Summary of the 2019 Tax Return
Briefly explain the benefit to a couple of filing a joint return. In your explanation, refer to an example specific to the tax returns of John & Ann.
Instructions
• You may use Profile Tax 2019, Studio Tax 2019, or any other tax Software (free) to do your assignment.
Income Tax Fundamentals 2016
ISBN: 9781337343527
34th edition
Authors: Gerald E. Whittenburg, Steven Gill, Martha Altus-Buller