Vincent is 63 years old and is an employee at Centennial University with a salary of $150,000. In addition to his salary, he has income of $10,000 from a registered pension plan from a previous job. His employer has withheld the maximum EI premium of $856 and CPP contribution of $2,732. He does not qualify for enhanced CPP. Vincent has no Division C deduction, therefore his taxable income is equal to his net income.

His wife Diane is 66 years old and has net income for tax purposes of $6,100.

They have a 20 year old son who lives at home. He is dependent because of a physical infirmity, but it is not severe enough to qualify him for the disability tax credit. However, he is able to attend college on a full-time basis for 8 months during 2020. John pays his tuition fees of $9,400, as well as $720 for the textbooks that he requires in his program. The son has Net Income For Tax Purposes of $8,350. The son agrees to transfer the maximum of his tuition fee amount to Vincent. Vincent installed walking bars to make their home more accessible for his son which cost $500. The son decided he would pay for the walking bars as they were for his benefit. There were no other medical expenses for the family.

What is Vincent's Taxable Income?

What is Vincent's Federal Tax before Credits?

How much of the Basic Personal Amount tax credit, before 15% is applied, can Vincent claim?

How much of the Spousal Amount tax credit, before 15% is applied, can Vincent claim?

How much of the Eligible Dependent tax credit, before 15% is applied, can Vincent claim?

How much of the EI plus CPP tax credit, before 15% is applied, can Vincent claim?

How much of the Age Amount tax credit, before 15% is applied, can Vincent claim?

How much of the Canada Employment Amount tax credit, before 15% is applied, can Vincent claim?

How much of the Tuition tax credit, before 15% is applied, can Vincent claim?

How much of the Medical tax credit, before 15% is applied, can Vincent claim?

How much of the Pension tax credit, before 15% is applied, can Vincent claim?

Answer rating: 100% (QA)

To calculate Vincents taxable income and various tax credits we need to consider the relevant income and deductions Lets go step by step 1 Vincents Em... View the full answer