Your client (individual taxpayer) is 56 years old in 2020.

She has the following information specific to 2020 (unless otherwise specified):

• She is married. Her spouse is 58 and had income of $9,000.
• Her salary received in the year was $85,000. She also received a $2,000 bonus at the beginning of the year (which related to 2019).
• She had employment insurance premiums of $856 and CPP contributions of $2,898 withheld at source.
• She earned $10,000 in interest income from Canadian government bonds.
• She did not pay any tax instalments as she her income tax is withheld at source.
• She made charitable donations to 4 different charities for $200 each.
• She had $16,000 in rental revenue. She paid $4,000 maintenance on the rental property and mortgage interest of $2,500. The total CCA taken on the property was $1,300.
• She also had a taxable capital gain of $3,750 and an allowable capital loss of $2,200.
• Your client’s medical expense receipts from Jan 1 – Dec 31 were $1,100.
• Her daughter is a student at a Canadian university. The tuition fees paid by the daughter was $7,400. Assume that the daughter has no income so she will not be claiming the tuition tax credit. The maximum will be transferred to the parent (your client).

• Her son is 25 and lives with them. They have been taking care of him since his accident at 17. Her son has earned some interest income of $5,000.

Required

Calculate the taxpayer’s minimum federal tax payable for 2020. Your client will then compare this to the amount of taxes withheld (by the employer; this amount has not been provided in the question) and any difference will need to be paid.

Answer rating: 100% (QA)

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