Tax Brackets for Salary and Interest Income

Dividend Tax Treatment

$0$ to $$15,000$

$$15,001$ to $$30,000$

$$30,001$ to $$70,000$

$$70,001$ to $$110,000$

$$110,001$ to $200,000$

$$200,000$ plus

$0\%$

$15\%$

$25\%$

$35\%$

$45\%$

$55\%$

Dividend Gross Up Rate

Federal Dividend Tax Credit

Provincial Dividend Tax Credit

$25\%$

$15\%$

$9\%$

Charity Tax Credit

Capital Gains Exclusion Rate

$50\%$

First $$200$ donation

Above $$200$ donation

$12\%$

$20\%$

It is the month of February, and Morgan is working on their income taxes. Morgan recorded the following information from the past year.

Salary Income $$105,000$

Interest Income from Bond Mutual Fund $$2,500$

Capital Gains $$2,500$

Dividend Income $$1,300$

RRSP Contribution $$5,500$

Charity Contributions to Algonquin College Alumni Fund $$800$

Please answer the following parts:

A$.$ What would the amount of net taxes they would pay on their dividend income? $(1$ mark$)$

options:

$$178\mathrm{.}75$

$$128\mathrm{.}75$

$$207\mathrm{.}53$

$$230\mathrm{.}00$

$$222\mathrm{.}30$

b$.$ Since Morgan made a RRSP contribution of $$5,500,$ how much in income taxes would they be saving based on this RRSP contribution? $(1$ mark$)$

options:

$$1,925\mathrm{.}00$

$$1,702\mathrm{.}72$

$$2,225\mathrm{.}00$

$$1,800\mathrm{.}00$

$$1,796\mathrm{.}76$

C$.$Since Morgan had made $$800$ in charity contributions to Algonquin College during the past year, what would Morgan's tax credit on this charity contribution. $(1$ mark$)$

$12$ options:

$$84\mathrm{.}00$

$$90\mathrm{.}00$

$$76\mathrm{.}00$

$$144\mathrm{.}00$

$$112\mathrm{.}00$

d$.$ Assuming Morgan had decided to make the $$5,500$ RRSP contribution and makes the $$800$ charity contribution, how make would be their total tax bill from all sources of income. $(2$ marks$)$

options:

$$26,375\mathrm{.}94$

$$18,201\mathrm{.}46$

$$19,547\mathrm{.}25$

$$21,006\mathrm{.}38$

$$20,400\mathrm{.}94$