Description

Applicable (2020) T1 forms and schedules must be used

Ted Jacobs (SIN: 123 456 789; date of birth: August 2, 1992). He is married to Holly (SIN 987 654 321). Both are English speaking Canadians, newly married and live at 123 Main Street, Toronto Ontario M1X 0X0. Ted approached you and asked your help to prepare his Individual T-1 tax return for 2020.

Ted Jacobs provided you with additional information for the period ending December 31, 2019 as given below:

A. This year (2020), Ted Jacobs, started a job as a graphic artist at Grand Designs Corp. During the year 2020, he earned $50,000 and his employer sent him a T4 information slip(Please refer to the T4 Slip for details).

B. During the year, Ted contributed $5,000 to a registered retirement savings plan (RRSP) at his local bank. Ted has determined that he has the RRSP deduction limit to claim the full amount on his tax return. He has a $15,000 RRSP deduction limit.

C. Holly's only income for the year is the withdrawal of $9,000 from her own RRSP.

D. Ted also received $40 interest from his savings account at the CIBC bank. He did not receive a T5 information slip for this amount (Note: Bank does not issue information slip for an amount less than $50).

E. Ted Jacobs paid Property Tax of $2,800 in 2020 for his principal residence.

F. Ted rented his mortgage-free condo (he solely owns) located at 606-99 Princess Street in Kingston to a student for $600 per month.His expense was the monthly maintenance fee of $180.00 and the Property Tax for 2020 was $1,500.

G. As a side business, he creates greeting cards (after office hours at work) and sells them to Shoppers Drug Mart.For the year 2020, his sales amounted to $14,000 and the materials cost him $7,260.00.He had no other direct or indirect expenses that he could attribute to his side-business.

To complete return, the following information slips received for 2020 are providedherewith

T4 slip from Grand Designs Corp.

InstructionsREQUIRED:

I. Based on the information given below, prepare Mr. Ted Jacob's 2020 Income Tax and Benefit return.

II. The relevant T1 forms /schedules should be completed and numbers extracted from the completed return.

III. Enter online, the relevant amounts as described below and from the specified line from the Tax Return

You will see the marks allocation as you progress through the questions.

To complete return, the following information slip received for 2020 is provided herewith:

• T4 slip from Grand Designs. (excerpts from T4 slip shown below)

GRAND DESIGNS

Box 14 Gross Pay

50,000.00

TED JACOBS

Box 16 CPP

1,495.00

T4Statement of Remuneration Paid

Box 18 EI

756.00

Year 2020

Box 22 Tax Deducted

6900.00