Wendy received the following amounts in the current year:
• Support payments from her former spouse ($4,000 x 12) $48,000
• Employment insurance benefits 4,100
• Inheritance 20,000
• Scholarship 5,000
• RRSP withdrawal (LLP) 10,000
• Canada child tax benefit 3,450
• Universal child care benefit ($100 x 12) 1,200
• Lottery winnings 300
The support payments are in accordance with Wendy’s divorce agreement, which calls for monthly support payments of $1,500 for Wendy and $2,500 for her 4-year-old daughter. Wendy became frustrated during the year with not being able to find suitable employment and returned to school. She enrolled as a full-time student at the University of Toronto. She withdrew $10,000 from her RRSP to help finance her education.
Determine the amount to be included in Wendy’s income for tax purposes for the current year. Income tax reference: ITA 56(1)(a), (b), (n), (h), (h.2), 56(3),(6) 56.1(4), 60(b), 122.6, 146.02.