Theodore is 37 years old. He earned $112,000 in 20x9 at his job as a financial analyst. His CPP and EI contributions totaled $3,609. In 20x9 he enrolled in part-time studies at his local university. His tuition fees totaled $1,500. Theodore donated $2,000 to Ducks Unlimited (a registered charity for tax purposes), and $800 to a federal political party. He also spent a total of $4,500 on eyeglasses, dental care, and prescriptions in 20x9, none of which was reimbursed. Theodore's wife did not work during 20x9 while she was enrolled full-time in university as a nursing student. She had no other income and her taxable income was $0. Her tuition fees were $8,000. She always transfers as much of her tuition to Theodore as possible. Theodore has a $2,000 non-capital loss from 20x8. Theodore and his wife do not have any children.
Required:
A. Calculate Theodore's taxable income for 20x9.
B. Calculate Theodore's federal tax liability for 20x9.

Question

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The Answer of Theodore is 37 years old. He earned $112,000 in 20x9 at his job as a financial analyst. His CPP and EI contributions totaled $3,609. In 20x9 he enrolled in part-time studies at his local university. His tuition fees totaled $1,500. Theodore donated $2,000 to Ducks Unlimited (a registered charity for tax purposes), and $800 to a federal political party. He also spent a total of $4,500 on eyeglasses, dental care, and prescriptions in 20x9, none of which was reimbursed. Theodore's wife did not work during 20x9 while she was enrolled full-time in university as a nursing student. She had no other income and her taxable income was $0. Her tuition fees were $8,000. She always transfers as much of her tuition to Theodore as possible. Theodore has a $2,000 non-capital loss from 20x8. Theodore and his wife do not have any children.
Required:
A. Calculate Theodore's taxable income for 20x9.
B. Calculate Theodore's federal tax liability for 20x9.

Theodore Is 37 Years Old