The year 2020 was not an easy year for Samuel who graduated from the University of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The year 2020 was not an easy year for Samuel who graduated from the University of Toronto in April 2020. He was very sick with COVID-19 which delayed his job search. After many interviews, he finally landed a great job working at Microsoft in Montreal. His moving expenses totalled $1,000 (he saved all the receipts as he knew he could claim this as a deduction on his tax returns). He signed his offer letter with a start date of July 1, 2020, at a gross annual salary of $89,000 plus a lump-sum signing bonus of $5,000. Samuel is paid semi-monthly and received his first pay cheque on July 15, 2020. As an exceptional hard worker, he was also recognized by his manager and team where he received an award bonus of $10,000 on his December 15th pay. After having taken a Personal Finance course, he knew to put both bonuses into registered accounts; he therefore made contributions of $3,000 to his Registered Retirement Savings Plan (RRSP) and $12,000 to a Tax-Free Savings Account (TFSA). He noted that his Canada Revenue Agency (CRA) Notice of Assessment stated he could make RRSP contributions of up to $15,000 (based on his previous part-time work when he was a student). We are currently July 5, 2021, and Samuel is ready to file his 2020 personal income tax returns. He knows that he will be getting a refund and was therefore not worried about filing late or penalties. He could however use the refund due to his medical expenses from COVID and having to stay in a government hotel for quarantine, which totalled $1,500. His parents claimed his tuition of $5,000 on their returns. With his move to Montreal in June 2020, he is filing his returns as a resident of Quebec. Calculate his combined 2020 taxes payable. (See Table A; ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings.) a) Calculate Samuel's Taxable Income (1 mark) Calculation: (1 mark) b) Calculate Samuel's Combined Federal and Quebec Personal Income Taxes Payable on his Taxable Income (1 mark) Calculate Samuel's Combined Federal and Quebec Personal Income Taxes Payable on his Taxable Income 2020 first $44,545 on taxable income $44,545 up to $48,535 $48,535 up to $89,080 $89,080 up to $97,069 $97,069 up to $108,390 $108,390 up to $150,473 $150,473 up to $214,368 $214,368 Total Taxes Payable (1 mark) c) Samuel just turned 23 on July 1, 2021. Calculate the maximum Tax-Free Savings Account (TFSA) that he could contribute today (taking into consideration carry forward amounts). Note that Samuel has not made any other contributions except for the contribution in 2020 and has never made any withdrawals. The year 2020 was not an easy year for Samuel who graduated from the University of Toronto in April 2020. He was very sick with COVID-19 which delayed his job search. After many interviews, he finally landed a great job working at Microsoft in Montreal. His moving expenses totalled $1,000 (he saved all the receipts as he knew he could claim this as a deduction on his tax returns). He signed his offer letter with a start date of July 1, 2020, at a gross annual salary of $89,000 plus a lump-sum signing bonus of $5,000. Samuel is paid semi-monthly and received his first pay cheque on July 15, 2020. As an exceptional hard worker, he was also recognized by his manager and team where he received an award bonus of $10,000 on his December 15th pay. After having taken a Personal Finance course, he knew to put both bonuses into registered accounts; he therefore made contributions of $3,000 to his Registered Retirement Savings Plan (RRSP) and $12,000 to a Tax-Free Savings Account (TFSA). He noted that his Canada Revenue Agency (CRA) Notice of Assessment stated he could make RRSP contributions of up to $15,000 (based on his previous part-time work when he was a student). We are currently July 5, 2021, and Samuel is ready to file his 2020 personal income tax returns. He knows that he will be getting a refund and was therefore not worried about filing late or penalties. He could however use the refund due to his medical expenses from COVID and having to stay in a government hotel for quarantine, which totalled $1,500. His parents claimed his tuition of $5,000 on their returns. With his move to Montreal in June 2020, he is filing his returns as a resident of Quebec. Calculate his combined 2020 taxes payable. (See Table A; ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings.) a) Calculate Samuel's Taxable Income (1 mark) Calculation: (1 mark) b) Calculate Samuel's Combined Federal and Quebec Personal Income Taxes Payable on his Taxable Income (1 mark) Calculate Samuel's Combined Federal and Quebec Personal Income Taxes Payable on his Taxable Income 2020 first $44,545 on taxable income $44,545 up to $48,535 $48,535 up to $89,080 $89,080 up to $97,069 $97,069 up to $108,390 $108,390 up to $150,473 $150,473 up to $214,368 $214,368 Total Taxes Payable (1 mark) c) Samuel just turned 23 on July 1, 2021. Calculate the maximum Tax-Free Savings Account (TFSA) that he could contribute today (taking into consideration carry forward amounts). Note that Samuel has not made any other contributions except for the contribution in 2020 and has never made any withdrawals.
Expert Answer:
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
Students also viewed these accounting questions
-
The year 2020 was a time of change and turmoil for many people, especially Hilary. Although she was laid off and forced to retired, nevertheless, it was a very good financial year for her, earning...
-
Nancy, who graduated from State University in June 2013, has just landed her first real job. She is excited because her salary is $4,000 per month. Nancy is single and has been planning all month...
-
Nancy, who graduated from State University in June, Year 1, has just landed her first real job. She is excited because her salary is $4,000 per month. Nancy is single and has been planning all month...
-
East Corp is a mature company and expects its sales and operating costs to be fixed (or unchanged) in perpetuity. It has sales of $524,000 and operating costs of $272,480. The firm has a tax rate of...
-
A church organist was fired, allegely for poor performance. He had served as organist for many years. His principal duty was to play organ music during church services and for choir practices. He did...
-
"I believe in problem analysis--that's at the heart of things--but I sure don't like those focus groups. I sat in on a couple last year, and all the people did was chat. And the chatting never seemed...
-
A low-power college radio station broadcasts \(10 \mathrm{~W}\) of electromagnetic waves. At what distance from the antenna is the electric field amplitude \(2.0 \times 10^{-3} \mathrm{~V} /...
-
The following data relate to labor cost for production of 8,000 cellular telephones: a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. b....
-
1. (a) Consider the power series (z+1)k k! k=0 Show that the series converges for every z E R. Include your explanation in the handwritten answers. (b) Use Matlab to evaluate the sum of the above...
-
In this assignment you will be required to complete tasks related to job costing. Download the document, complete the required information, save the document, and submit the assignment in Blackboard....
-
Tete Styies Fane Dictan I Premise: After a stellar February performance, your Chix and Waffles food truck sat in the garage for the duration of the lockdown. You will slowly re-start your business on...
-
When Microsoft launched its Xbox console in 2001 the NPV from the project was negative. However, the company proceeded with the project. Why do you think this was?
-
Since 2007 credit rating agencies have come under a lot of criticism for their role in the subprime mortgage crisis. To what extent do you think credit rating agencies were responsible for the...
-
Ross (1995) puts forward that there are three sources of value in a typical capital budgeting project. Explain these three sources using examples.
-
Define the market portfolio and provide a brief overview of Rolls Critique. Do you agree or disagree with it? Why?
-
Given that the Venezuela Caracas Stock Exchange was up by over 80 per cent for 2011, why didnt all investors put their money in Venezuela?
-
Quantitative risk analysis refers to the numerical analysis of project risk. Select the techniques and tools that apply to quantitative risk analysis. Select all that apply: Probability distributions...
-
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
-
The following transactions pertain to Chef Training Company for 2013: Jan. 30 Established the business when it acquired $37,500 cash from the issue of common stock. Feb. 1 Paid rent for office space...
-
The following information is available for Lumberton Co. for the week ending June 28, 2013. All employees are paid time and one-half for all hours over 40. Each employee has cumulative salary of over...
-
The trial balance of Pacilio Security Services Inc. as of January 1, 2012, was as follows: Cash ........ $8,500 Land ....... 4,000 Notes Payable .... 5,000 Common Stock .. 6,000 Retained Earnings ....
-
Outline the general strategy used in metagenomics.
-
The codon change (Gly-12 to Val-12) in human H-ras that converts it to oncogenic H-ras has been associated with many types of cancers. For this reason, researchers would like to develop drugs to...
-
You need to understand the approach described in question 3 in More Genetic TIPS before answering this question. A muscle-specific gene was cloned and then subjected to promoter bashing. As shown...
Study smarter with the SolutionInn App