In each of the following independent Cases, determine the maximum amount of 2020 personal tax credits, including transfers from a spouse or dependant, that can be applied against federal Tax Payable by the taxpayer. Ignore, where relevant, the possibility of pension income splitting.

A calculation of Tax Payable is NOT required, only the applicable credits.

1. Sarah Partridge is 72 years old and has Net Income For Tax Purposes of $61,300. This total is made up of OAS payments and pension income from her former employer. Her husband is 58 years old and has Net Income For Tax Purposes of $4,725.

2. Martin Brody was divorced from his wife several years ago. He has custody of their four children, ages 7, 9, 12, and 15. His Net Income For Tax Purposes consists of spousal support payments totaling $54,000 per year. The children are all in good health. The oldest child has Net Income For Tax Purposes of $11,200 during the year.

3. Marion Lassiter has Net Income For Tax Purposes of $132,450, all of which is rental income. Her husband has Net Income For Tax Purposes of $1,600. They have three children, ages 14, 16, and 19. All of these children are in good health and continue to live at home. The 19 year old child has Net Income For Tax Purposes of $8,460. During the current year, Ms. Lassiter pays the following medical expenses:

Marion

$ 4,240

Her Spouse

3,450

14 Year Old Child

1,860

16 Year Old Child

2,450

19 Year Old Child

6,720

Total

$18,720

4. Janice Archer has Net Income For Tax Purposes of $92,100, none of which is employment income or income from self-employment. Her spouse has Net Income For Tax Purposes of $7,240. Their daughter is 15 years old, lives with them, and has Net Income For Tax Purposes of $2,150. Their son is 22 years old and, because of a physical disability, continues to live with them. He has no income of his own. His disability is not severe enough to qualify for the disability tax credit.

5. Joan Baxter has Net Income For Tax Purposes of $85,000, all of which is employment income. Her employer withholds maximum CPP contributions and EI premiums. She is married to John Brown whose Net Income For Tax Purposes is $4,230. They have three children aged 7, 9, and 11. All of the children are in good health and none of them have income of their own.

Answer rating: 100% (QA)

Janice Archer Cooper 92100 Janice Archers spouse 7240 Janice Archers daughter 21... View the full answer