Sheila Rivers is single and lives with her elderly mother, who is infirm. During 2019, Sheila...

 

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Sheila Rivers is single and lives with her elderly mother, who is infirm. During 2019, Sheila had salary income of $60,000, she contributed $3,500 to a Registered Pension Plan, and she paid union dues of $1,250. Sheila received a trip worth $750 during 2019 to recognize her 10 years of service to Allbright Ltd., the company she works for. Sheila's mother, Sarah Rivers, has net income for tax purposes of $18,000. Sheila has a 17-year-old daughter who, during 2019, paid tuition fees of $9,500 to attend university on a full-time basis for eight months. Sheila's daughter has NO income to declare for 2019. During 2019, Sheila made charitable donations to the same charities she has donated to in the past in the amount of $550, and Sarah made donations in the amount of $175. Medical expenses for 2019 totalled $4,175 for both Sheila and her daughter. Sarah incurred medical expenses of $500. Sheila paid the maximum Canada Pension Plan of $2,749, including the CPP enhanced amount of $81, and Employment Insurance contributions of $860 for 2019. Required: Calculate the following: a) Sheila's net income for tax purposes and taxable income for 2019. (3 marks) b) Sheila's net federal tax payable for 2019. (9 marks) Sheila Rivers is single and lives with her elderly mother, who is infirm. During 2019, Sheila had salary income of $60,000, she contributed $3,500 to a Registered Pension Plan, and she paid union dues of $1,250. Sheila received a trip worth $750 during 2019 to recognize her 10 years of service to Allbright Ltd., the company she works for. Sheila's mother, Sarah Rivers, has net income for tax purposes of $18,000. Sheila has a 17-year-old daughter who, during 2019, paid tuition fees of $9,500 to attend university on a full-time basis for eight months. Sheila's daughter has NO income to declare for 2019. During 2019, Sheila made charitable donations to the same charities she has donated to in the past in the amount of $550, and Sarah made donations in the amount of $175. Medical expenses for 2019 totalled $4,175 for both Sheila and her daughter. Sarah incurred medical expenses of $500. Sheila paid the maximum Canada Pension Plan of $2,749, including the CPP enhanced amount of $81, and Employment Insurance contributions of $860 for 2019. Required: Calculate the following: a) Sheila's net income for tax purposes and taxable income for 2019. (3 marks) b) Sheila's net federal tax payable for 2019. (9 marks)

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Calculating Sheilas Net Income and Taxable Income a Step 1 Calculate Sheilas Adjusted Gross Income A... View the full answer