Section 4: Using tax concepts for planning The Smiths want to assess their tax situation for...

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Section 4: Using tax concepts for planning The Smiths want to assess their tax situation for 2012. Using the information provided in the case, calculate the total tax that the family will pay, assuming that Amber and Joel will use any applicable deductions to minimize taxes owing. The purpose of this section is to give the Smiths a preliminary idea of the taxes they will owe for the 2012 taxation year, due April of 2013, and to get an idea of whether they will be receiving a refund next year. The Smiths have not made any RRSP contributions and neither spouse has a pension plan. Be sure to include Canada Pension Plan (CPP) and Employment Insurance (El) contributions in your calculations. The following links will provide useful rate information for El and CPP: El - www.taxtips.ca/cppandei/eirates.htm - CPP- www.taxtips.ca/cppandei/cpprates.htm Section 4: Using tax concepts for planning The Smiths want to assess their tax situation for 2012. Using the information provided in the case, calculate the total tax that the family will pay, assuming that Amber and Joel will use any applicable deductions to minimize taxes owing. The purpose of this section is to give the Smiths a preliminary idea of the taxes they will owe for the 2012 taxation year, due April of 2013, and to get an idea of whether they will be receiving a refund next year. The Smiths have not made any RRSP contributions and neither spouse has a pension plan. Be sure to include Canada Pension Plan (CPP) and Employment Insurance (El) contributions in your calculations. The following links will provide useful rate information for El and CPP: El - www.taxtips.ca/cppandei/eirates.htm - CPP- www.taxtips.ca/cppandei/cpprates.htm