Patty, a single parent of two children (ages nine and seven) works part-time as a clerk in a law office. She has provided you with the following information for 2012:
Income:
Workers' Compensation payments .................................................. $9,000
Employment income (Subdivision a) ............................................... 25,000
Cash dividend from Canadian-resident public corporations ........................ 480
University scholarship received ......................................................... 600
Expenses:
Canada Pension Plan contributions ................................................... 1064
Employment Insurance contributions................................................... 458
Cost of subsidized day care for the children (three days a week) .................. 240
University tuition paid for a three-month evening course .............................. 0
................................................................................................. 60
................................................................................................... 0
Patty receives the Workers' Compensation payment because of the accidental death of her husband two years ago. Her two minor children have no income.
Patty had $700 of tax withheld from her employment income and has paid no income tax installments.
REQUIRED
(A) Based on the information above, compute Patty's total federal and provincial tax for 2012 and her tax refund or balance due.
(B) Determine if Patty is eligible for the refundable goods and service tax credit and Canada Child Tax Benefit. Explain.
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