Fundamentals of Income Tax 2019– Owen (SIN 805 232 105) and Sonja (SIN 805 232 212) Cornell are married. They live at 2621 River Road, Your City, YP, P0M 1B0, phone number 983-2425. Owen was born on August 19, 1976 and Sonja was born on June 3, 1978. Owen and Sonja are the parents of two children: Kirsten (born on July 1, 2000) and Ingrid (born on May 17, 2009). Ingrid does not have any income. Kirsten (SIN 805 232 329) graduated from secondary school in June. She received a scholarship for her excellent work in school and has a T4A with $5,000 in Box 105. Kirsten took the summer off to do some traveling. In September, Kirsten began fulltime study at the University of Your Province. She lives in a university residence during the academic year, but she uses River Road as her official address. In addition to tuition of $3,000, Kirsten spent $350 on books and $25 for student association fees. She has receipts for these expenses. Kirsten’s T2202A shows that she attended university full-time for four months. Owen works as a meteorologist and Sonja works part-time as a graphic artist. Their information slips are reproduced on the following pages. Owen and Sonja paid the following medical expenses in 2019, for which they were not reimbursed by their insurance:

❑ On July 16, $2,100 to Dr. Wolf for Kirsten’s orthodontist bill;

❑ On August 15h, $5,000 to Dr. Wolf for Ingrid’s orthodontist bill; and

❑ For the year, $2,500 for Sonja’s chiropractor’s bills.

Owen has official receipts for these expenses. The only other medical expenses the Cornells had in 2019 were the premiums for the health insurance plan Owen paid through his employer.

Sonja was in hospital for six weeks during the year, but all of her expenses were covered by their health plan. Sonja paid Victoria Lipinski (SIN 805 212 438) $2,000 to care for Ingrid after school on the days she worked and for the six weeks she was in hospital.

Box 22:

BC: 11,280; AB: 11,660; SK: 12,675; MB: 14,210; ON: 12,100; NB: 14,110; NS: 14,800; PE: 14,450; NL: 14,446; YT: 11,590; NT: 10,400; NU: 9,370; 240

Based on the information provided, answer the questions that follow:

1. How much of the scholarship she received must Kirsten include in her income? Explain your answer.

2. Kirsten is filing her own return; will she receive a GST/HST credit? Why or why not?

3. How much of her expenses for books and association fees can Kirsten claim on her tax return? Explain your answer.

4. Explain how the child care expenses should be claimed (by whom and how much).

5. List below the medical expenses that can be claimed.

6. Who should claim the medical expenses? Explain your answer.

7. Calculate the amount of the medical expense to be claimed on Line 33099 and on Line 33199. Show your calculations for Lines.

2019 T4-Conjectual Associates Cornell Owen Box 14- $64250, Box 24 and 26 - $53,100 and $57,400Box 16- $2,748.90 Box 18 - $860.22 , Box 20- $950, Box 52 $2,375 Box 85- $1,492. Box 22 SK: $12,675

2019 T4- Delight to the Eyes- Cornell Sonja Box - 14, 16, 18, 22, 24, and 26 : $10,580, $361.08, $171.40, $550, $10,580, $10,580

2019 T4A - University Scholarship Program Box 105- $5,000

T2202- Tuition and Enrolment Certificate- Kirsten Cornell- University of your province 19 Sep 2019 - 19 Dec 2019. 4mths Full time. Eligible Tuition $3,000

Required:

Download the fillable version of the federal and provincial Schedule 11 from the CRA website and complete them manually.

Answer rating: 100% (QA)

A scholarship is generally an amount paid or allowed to a student at an educational institution the ... View the full answer