Assignment Problem Four - 4 (Personal Tax Credits - 6 Cases) In each of the following...

  

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Assignment Problem Four - 4 (Personal Tax Credits - 6 Cases) In each of the following independent Cases, determine the maximum amount of 2019 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer. A calculation of Tax Payable is NOT required, only the applicable credits. 1. Ms. Jones is married and has Net Income For Tax Purposes of $123,000, none of which is employment income or income from self-employment. Her husband is currently unem- ployed, but has interest income from investments of $3,750. Her 20 year old dependent son attends university and lives at home. Her son has Net Income For Tax Purposes of $4,800 and does not agree to transfer his tuition credit to her. 2. Ms. Martin is 66 years old and has Net Income For Tax Purposes of $28,750. This total is made up of OAS of $7,400, plus pension income of $21,350 from a former employer. Her husband is 51 years old and blind. He has no income of his own. Ignore the possibility that Ms. Martin would split her pension income with her husband. 3. Mr. Sharp has Net Income For Tax Purposes of $72,350, none of which is employment income or income from self-employment. He lives with his common-law partner and her three children from a previous relationship. The children are aged 13, 15, and 20. The 20. year child is dependent because of a physical disability. However, the disability is not sufficiently severe to qualify for the disability tax credit. Neither the common-law partner nor any of the children have any source of income. 4. Mr. Barton was divorced two years ago and maintains a residence separate from his former spouse. He has custody of the three children of the marriage, aged 8, 9, and 10 and receives $2,500 per month in child support payments. Mr. Barton has Net Income For Tax Purposes of $62,300, none of which is employment income or income from self-employ- ment. None of the children have any income of their own. 5. Ms. Cole has Net Income For Tax Purposes of $175,000, all of which is employment income. Her employer has withheld and remitted the required El and CPP amounts. She was married on December 1, 2019. Her new husband is an accounting student with a large firm. His salary for the period January 1 through November 30, 2019 was $33,000. For the month of December, 2019, his salary was $3,000. 6. Mr. Smead has Net Income For Tax Purposes of $85,000, none of which is employment income or income from self-employment. He lives in a residence that he has owned for many years. He does not currently have a spouse or common-law partner. However, he has custody of his 10 year old son who lives with him. Also living with him is his 68 year old, widowed mother. She has a physical infirmity. However, it is not sufficiently severe for her to qualify for the disability tax credit. Mr. Smead's son had no income during the year. His mother had OAS benefits and pension income which totaled $18,500 during the year. Assignment Problem Four - 4 (Personal Tax Credits - 6 Cases) In each of the following independent Cases, determine the maximum amount of 2019 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer. A calculation of Tax Payable is NOT required, only the applicable credits. 1. Ms. Jones is married and has Net Income For Tax Purposes of $123,000, none of which is employment income or income from self-employment. Her husband is currently unem- ployed, but has interest income from investments of $3,750. Her 20 year old dependent son attends university and lives at home. Her son has Net Income For Tax Purposes of $4,800 and does not agree to transfer his tuition credit to her. 2. Ms. Martin is 66 years old and has Net Income For Tax Purposes of $28,750. This total is made up of OAS of $7,400, plus pension income of $21,350 from a former employer. Her husband is 51 years old and blind. He has no income of his own. Ignore the possibility that Ms. Martin would split her pension income with her husband. 3. Mr. Sharp has Net Income For Tax Purposes of $72,350, none of which is employment income or income from self-employment. He lives with his common-law partner and her three children from a previous relationship. The children are aged 13, 15, and 20. The 20. year child is dependent because of a physical disability. However, the disability is not sufficiently severe to qualify for the disability tax credit. Neither the common-law partner nor any of the children have any source of income. 4. Mr. Barton was divorced two years ago and maintains a residence separate from his former spouse. He has custody of the three children of the marriage, aged 8, 9, and 10 and receives $2,500 per month in child support payments. Mr. Barton has Net Income For Tax Purposes of $62,300, none of which is employment income or income from self-employ- ment. None of the children have any income of their own. 5. Ms. Cole has Net Income For Tax Purposes of $175,000, all of which is employment income. Her employer has withheld and remitted the required El and CPP amounts. She was married on December 1, 2019. Her new husband is an accounting student with a large firm. His salary for the period January 1 through November 30, 2019 was $33,000. For the month of December, 2019, his salary was $3,000. 6. Mr. Smead has Net Income For Tax Purposes of $85,000, none of which is employment income or income from self-employment. He lives in a residence that he has owned for many years. He does not currently have a spouse or common-law partner. However, he has custody of his 10 year old son who lives with him. Also living with him is his 68 year old, widowed mother. She has a physical infirmity. However, it is not sufficiently severe for her to qualify for the disability tax credit. Mr. Smead's son had no income during the year. His mother had OAS benefits and pension income which totaled $18,500 during the year.

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1 Personal tax credits 2000 2 Personal tax credits 7500 3 Personal tax credits 600... View the full answer