Question: 143 Case Study 4 - 2 Manuel (SIN 888 888 625) and his wife Isabella (888 888 054) separated on October 21, 2022. 3 months
143 Case Study 4 - 2 Manuel (SIN 888 888 625) and his wife Isabella (888 888 054) separated on October 21, 2022. 3 months before she left the family home, Isabella withdrew $20,000 from her RRSP's to help her finance her new life. Her T4RSP slip shows the $20,000 withdrawal in box 22 as well as the tax withheld of $6,000 in box 30. The slip indicates that this RRSP account is a spousal RRSP. Manuel had always contributed to the spousal RRSP for Isabella. She did not contribute any to her own RRSP during this time. Manuel's spousal RRSP contributions for the last 3 years are as follows: 2020 - $7,000 2021 - $5,000 2022 - $4,000 Complete the T2205 for Isabella for 2022 and answer the following questions. 1. How much will Manuel have to enter as income on his return due to this withdrawal? a) $0 b) $4,000 c) $16,000 d) $20,000 2. On which line will Manuel report this income? a) Line 10100 b) Line 10400 c) Line 12900 d) Line 20800 3. How much will Isabella have to enter as RRSP income on her return? a) $0 b) $4,000 c) $16,000 d) $20,000 4
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