Theodore is 37 years old.He earned $97,000 in 2018 at his job as a financial analyst.His CPP and EI contributions totaled $3,452.In 2018 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 2018,none of which was reimbursed.Theodore's wife did not work during 2018 while she was enrolled 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 2017.Theodore and his wife do not have any children.
Required:
A.Calculate Theodore's taxable income for 2018.
B.Calculate Theodore's federal tax liability for 2018.
(Use rates and rules applicable to 2018.)

Question

Quizplus · Accepted Answer

The Answer of Theodore is 37 years old.He earned $97,000 in 2018 at his job as a financial analyst.His CPP and EI contributions totaled $3,452.In 2018 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 2018,none of which was reimbursed.Theodore's wife did not work during 2018 while she was enrolled 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 2017.Theodore and his wife do not have any children.
Required:
A.Calculate Theodore's taxable income for 2018.
B.Calculate Theodore's federal tax liability for 2018.
(Use rates and rules applicable to 2018.)

Theodore Is 37 Years Old