Ms. Athena Wisdom is preparing her 2021 tax return and having learned that you had taken the
Question:
Ms. Athena Wisdom is preparing her 2021 tax return and having learned that you had taken the Taxation course at George Brown College, she has come to you for some assistance in computing her income from various sources, deductions, Federal Tax Credit and Federal Tax.
Athena age 46 years old and Apollo Sunny age 51 have been companions for the last
4 years cohabiting in a conjugal relationship (common- law relationship).
Athena has 2 children from her previous marriage, son Ares age 17, and daughter Nikki age 20. Athena has custody and both children live with them and are supported by both.
You are provided with the following information:
Ms. Wisdom is employed by Titan Enterprises Limited (TEL) a large Canadian public corporation as vice president of Operations.
During 2021, Athena received a gross annual salary of 164,000 ($60,000 from Victoria BC office and $124,000 from Toronto office).
Athena’s employer withheld the following amounts from her 2021 remuneration:
EI Premiums $ 890
CPP Contributions 3,166
RPP Contributions- 5,900
Group Term Life Insurance Premiums 980
United Way Donation 2,000
Payments for Personal use of Company Car 4,670
Income Tax Withheld (Fed.+Prov) 49,900
OTHER EMPLOYMENT INFORMATION:
i) TEL paid the following amounts on behalf of Athena:
Registered Pension Plan ( a matching contribution of) $ 5,900
Group Term Life Insurance ( a matching contribution of) $ 980
Group sickness/ Accident/Disability insurance Plan (100%) Sun Life $ 2,500
Private Health Plan Premiums (100%) $ 910
ii) During 2020, Athena pays dues to her professional association of $205.
iii) On September 1, 2021, a bonus of $ 30,000 was accrued for Athena. Ms.Wisdom received $20 ,000 of this bonus on December 1, 2021, with the remainder to be paid on March17, 2022.TEL has a December 31st year end.
iv) Athena incurred moving expenses, qualifying as allowable deduction for tax purposes, in the amount of $33,900. TEL reimbursed Athena in the amount of $ 33,900.
v) TEL provides Athena with an automobile that the company acquired in 2021
