Sahars income for tax purposes for 2019 and 2020 is as follows: 2019 2020 Salary $100,000 $110,000
Question:
Sahar’s income for tax purposes for 2019 and 2020 is as follows:
2019 2020
Salary $100,000 $110,000
Taxable benefits $ 8,000 $8,000
Travel expenses $ (3,000) $ (2,000)
RPP contributions $ (4,200) $ (4,200)
Business losses $ (1,000) $ (1,200)
Rental income $ 3,200 $ 3,600
Spousal support paid $ (12,600) $ (12,000)
Net income under Division B $ 90,400 $ 102,200
Which of the following statements is correct?
a) The earned income that should be used to calculate her child care expense deduction for 2020 is $110,000.
b) The earned income that should be used to calculate her 2020 RRSP deduction is $106,400.
c) The earned income that should be used to calculate her child care expense deduction for 2020 is $102,200.
d) The earned income that should be used to calculate her 2020 RRSP deduction is $94,600.
