Mr. Wallace Burns is a very successful executive with a Canadian public company. During 2020, he had Net Income For Tax Purposes and Taxable Income of $96,000, all of which was employment income.
The following five independent Cases make assumptions with respect to Wallace's marital status and number of dependants, as well as provides other information that is relevant to the determination of his 2020 Tax Payable. In all cases, his employer withholds the required EI premiums and CPP contributions.
Case A - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $6,750. Their 20 year old son Kenneth attends university on a full time basis during 11 months of the year. Wallace pays all of his son's costs including $9,850 for tuition and $1,350 for textbooks. Through part time jobs, Kenneth has income of $4,620. Kenneth has agreed to transfer the maximum tuition amount to his father.
Case B - While Wallace has never been married, he obtained custody of his 8 year daughter Sheila, when her mother, his high school girl friend, was killed in a car accident. Although he graduated several years ago, Wallace still has a Canada Student Loan outstanding of $35,000. During the year, interest paid on this loan totalled $1,750 and he paid down $5,000 of the principal.
Case C - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $4,580. Wallace's 82 year old father, Wilbur and Sharon's 63 year old mother, Samantha live with Wallace and Sharon. Wilbur had Net Income For Tax Purposes of $18,450, while Samantha had Net Income For Tax Purposes of $8,750. Both Wilbur and Samantha are feisty and healthy.
Case D - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $5,785. Wallace and Sharon have two children, Sonia who is 10 years old and Zack who is 8 years old. Neither child has any income during the year. The family's eligible medical expenses were as follows: Case E - Wallace has never been married and does not like small children. He is being treated by a psychologist for post traumatic stress disorder, but it is not severe enough to obtain a doctor's certificate for the disability tax credit. During the year he won $100,000 in the provincial lottery. Reflecting his belief that Canada is overpopulated, he donates the entire amount to Planned Parenthood, a registered Canadian charity. For 2020, he claims only $45,000 of his total donation. Wallace also makes contributions to a federal political party in the amount of $1,200.
Required: In each Case, calculate Wallace's minimum federal Tax Payable for 2020. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Wallace might have had withheld or paid in instalments.

Question

Mr. Wallace Burns is a very successful executive with a Canadian public company. During 2020, he had Net Income For Tax Purposes and Taxable Income of $96,000, all of which was employment income.
The following five independent Cases make assumptions with respect to Wallace's marital status and number of dependants, as well as provides other information that is relevant to the determination of his 2020 Tax Payable. In all cases, his employer withholds the required EI premiums and CPP contributions.
Case A - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $6,750. Their 20 year old son Kenneth attends university on a full time basis during 11 months of the year. Wallace pays all of his son's costs including $9,850 for tuition and $1,350 for textbooks. Through part time jobs, Kenneth has income of $4,620. Kenneth has agreed to transfer the maximum tuition amount to his father.
Case B - While Wallace has never been married, he obtained custody of his 8 year daughter Sheila, when her mother, his high school girl friend, was killed in a car accident. Although he graduated several years ago, Wallace still has a Canada Student Loan outstanding of $35,000. During the year, interest paid on this loan totalled $1,750 and he paid down $5,000 of the principal.
Case C - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $4,580. Wallace's 82 year old father, Wilbur and Sharon's 63 year old mother, Samantha live with Wallace and Sharon. Wilbur had Net Income For Tax Purposes of $18,450, while Samantha had Net Income For Tax Purposes of $8,750. Both Wilbur and Samantha are feisty and healthy.
Case D - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $5,785. Wallace and Sharon have two children, Sonia who is 10 years old and Zack who is 8 years old. Neither child has any income during the year. The family's eligible medical expenses were as follows:  Case E - Wallace has never been married and does not like small children. He is being treated by a psychologist for post traumatic stress disorder, but it is not severe enough to obtain a doctor's certificate for the disability tax credit. During the year he won $100,000 in the provincial lottery. Reflecting his belief that Canada is overpopulated, he donates the entire amount to Planned Parenthood, a registered Canadian charity. For 2020, he claims only $45,000 of his total donation. Wallace also makes contributions to a federal political party in the amount of $1,200.
Required: In each Case, calculate Wallace's minimum federal Tax Payable for 2020. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Wallace might have had withheld or paid in instalments.

Quizplus · Accepted Answer

The Answer of Mr. Wallace Burns is a very successful executive with a Canadian public company. During 2020, he had Net Income For Tax Purposes and Taxable Income of $96,000, all of which was employment income.
The following five independent Cases make assumptions with respect to Wallace's marital status and number of dependants, as well as provides other information that is relevant to the determination of his 2020 Tax Payable. In all cases, his employer withholds the required EI premiums and CPP contributions.
Case A - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $6,750. Their 20 year old son Kenneth attends university on a full time basis during 11 months of the year. Wallace pays all of his son's costs including $9,850 for tuition and $1,350 for textbooks. Through part time jobs, Kenneth has income of $4,620. Kenneth has agreed to transfer the maximum tuition amount to his father.
Case B - While Wallace has never been married, he obtained custody of his 8 year daughter Sheila, when her mother, his high school girl friend, was killed in a car accident. Although he graduated several years ago, Wallace still has a Canada Student Loan outstanding of $35,000. During the year, interest paid on this loan totalled $1,750 and he paid down $5,000 of the principal.
Case C - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $4,580. Wallace's 82 year old father, Wilbur and Sharon's 63 year old mother, Samantha live with Wallace and Sharon. Wilbur had Net Income For Tax Purposes of $18,450, while Samantha had Net Income For Tax Purposes of $8,750. Both Wilbur and Samantha are feisty and healthy.
Case D - Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $5,785. Wallace and Sharon have two children, Sonia who is 10 years old and Zack who is 8 years old. Neither child has any income during the year. The family's eligible medical expenses were as follows:  Case E - Wallace has never been married and does not like small children. He is being treated by a psychologist for post traumatic stress disorder, but it is not severe enough to obtain a doctor's certificate for the disability tax credit. During the year he won $100,000 in the provincial lottery. Reflecting his belief that Canada is overpopulated, he donates the entire amount to Planned Parenthood, a registered Canadian charity. For 2020, he claims only $45,000 of his total donation. Wallace also makes contributions to a federal political party in the amount of $1,200.
Required: In each Case, calculate Wallace's minimum federal Tax Payable for 2020. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Wallace might have had withheld or paid in instalments.

Mr Wallace Burns Is a Very Successful Executive with a Canadian