Mrs. Plant, age 47, is married and has three children: Amanda, age 24, Joan, age 17, and Courtney, age 16. Her own income for tax purposes of $60,000 includes employment income of $52,000.
Amanda has been certified as impaired by a medical doctor. Her only income is $6,500 from social assistance payments relating to her disability. She took a university course on a part-time basis for four months. Mrs. Plant paid her tuition fees of $300.
Joan attended a university on a full-time basis in another city for eight months, had employment income for tax purposes of $4,200 from a summer job while living at home and received a $2,500 scholarship. Mrs. Plant paid Joan's tuition fees of $3,000 and Joan paid her own moving costs to and from the university which were $150 each way.
Courtney, who is attending high school, had employment income for tax purposes of $2,800 from summer employment and a part-time job.
Mr. Plant, age 50, has the following sources of income:
Worker's Compensation payment ............................................................$5,000
Cash dividends from shares of Canadian-resident public corporations
Purchased with Mrs. Plant's savings ...........................................................4,000
Bank account interest earned from reinvestment of dividend income.......................100
REQUIRED
(A) Calculate the non-refundable tax credits available to Mrs. Plant for 2012. Compute Joan's taxable income to determine if any of her tuition, education, and textbook tax credits will be available to Mrs. Plant. Prepare detailed calculations supporting your claim. All ages are given as of the end of 2012.
(B) Determine whether Mrs. Plant is entitled to claim the Canada Child Tax Benefit.