Matilda Bertrand is single. At the beginning of 2019, Matilda Bertrand has a carry forward of a tuition tax credit from 2018 of $3,000 [(15%) ($20,000)]. During 2019, Matilda Bertrand attends college for 7 months. Her total tuition for the year, including allowable ancillary fees, is $7,500, of which she prepaid $1,500 in 2018. Interest paid for the year on her student loan was $580. On July 2, 2019, Ms. Bertrand began employment with Northern Mining Ltd. (NML). She received $60,000 salary for the year. NML withheld the following amounts from her earnings: Federal and Provincial Income Tax, $16,800 Employment Insurance Premiums, $860 CPP Contributions, $2,749 No other personal tax credits are available other than her own personal tax credit.

Requirements: 

1. Calculate the federal tax payable of Ms. Bertrand without regard to the taxes withheld.

2. Determine the total amount of education related tax credits that would be available for carry forward or transfer.

Answer rating: 100% (QA)

A Basically federal tax withholding is where your employer takes a certain amount of money out of your paycheck for taxes and sends it to the federal government on your behalf When tax season comes ar... View the full answer