Ms. Tina Terrific is a full-time employee of X Incorporated, an on-line clothing retailer. She has an
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Ms. Tina Terrific is a full-time employee of X Incorporated, an on-line clothing retailer. She has an annual salary of $75,000, from which the following amounts were withheld in 2022: Registered Pension Plan Contributions $3,500 CPP Contributions 3,166 EI Premiums 890 Annual Donation to United Way 1,500 Income Tax 14,980 In addition, Tina’s employer provided her with a life insurance policy at a cost of $350. X Incorporated also gave Tina a Holiday Bonus of a catered Christmas Dinner for her and her family. The cost of the meal was $230. Finally, X Incorporated has a gym in its building that is available for all staff, and only its staff, to use. Tina uses it regularly and as such gave up her old gym membership to a comparable gym that was $50/month. Tina is single and has an 8-year-old son. Tina paid for before- and after-school care for her son for the entire year. The total paid was $8,900. Tina’s father lives with the family and is financially dependent on Tina as his only income is Old Age Security of $7,000. He enjoys good physical and mental health. Tina’s father moved in with her after her mother passed away in 2019. During 2022, Tina contributed $4,000 to her RRSP and an additional $2,000 to her son’s RESP. Tina has provided the following information regarding the 2022 income from her investment portfolio. Investments in Shares • Tina owns 1,000 shares of Royal Scotia Bank. The company paid an eligible dividend of $24 per share on October 15, 2022. Required: For the 2022 taxation year, calculate Tina’s minimum:
a) Net Income For Tax Purposes
b) Taxable Income
c) Federal Tax Liability. Ignore HST and all provincial taxes and credits. Show your Work.
d) List any items omitted and the reason why they were not considered in your calculation
Related Book For
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
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