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    1) The taxpayer owes $42,453 in federal income tax on taxable income of $191,049 based on a 29% tax bracket for income between $155,625 and $191,049 and a 35% tax bracket for income above $155,625. 2) The taxpayer is eligible for $35,581 in personal tax credits including basic personal amount, CPP/EI, employment amount, and tuition credit transfer from their daughter. 3) After deducting $5,892 for tax credits from medical expenses, charitable donations, and political contributions, the taxpayer's total federal tax owing is $35,899.

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    1) The taxpayer owes $42,453 in federal income tax on taxable income of $191,049 based on a 29% tax bracket for income between $155,625 and $191,049 and a 35% tax bracket for income above $155,625. 2) The taxpayer is eligible for $35,581 in personal tax credits including basic personal amount, CPP/EI, employment amount, and tuition credit transfer from their daughter. 3) After deducting $5,892 for tax credits from medical expenses, charitable donations, and political contributions, the taxpayer's total federal tax owing is $35,899.

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    3 views1 page

    Text 5A80597B7C19 1

    Uploaded by

    AV
    1) The taxpayer owes $42,453 in federal income tax on taxable income of $191,049 based on a 29% tax bracket for income between $155,625 and $191,049 and a 35% tax bracket for income above $155,625. 2) The taxpayer is eligible for $35,581 in personal tax credits including basic personal amount, CPP/EI, employment amount, and tuition credit transfer from their daughter. 3) After deducting $5,892 for tax credits from medical expenses, charitable donations, and political contributions, the taxpayer's total federal tax owing is $35,899.

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    of 1

    Federal income tax:  

     
    On the first                     $155,625        $32,180 
    29% × the remainder          35,424        10,273 
                                            $191,049   42,453 
    Deduct personal tax credits:
    Basic personal amount $14,398 – (net income $204,709 – taxable income above which
    the 29% bracket begins $155,625) × ($1,679/$66,083)*  
    $(13,151)
     
    Equivalent to spouse (son has lowest income): 
     
    (12,151)  
    CPP/EI ($3,039 + $953) (3,992)  
    Employment    (1,287)  
    Tuition credit transfer from daughter (below)    (5,000)  
    Total personal tax credit amounts $(35,581)  
    Tax credit: 
    $(5,337)  
    Medical expenses:
    (3)  
    Charitable donations:
        (552) (5,892)
    Deduct dividend tax credit—Non-eligible:
       
           (312)
          Basic federal tax   36,249 
    Deduct other tax credit:
    Political contributions:
          (350)
    Total federal tax   $35,899 

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