Reference no: EM133069352

Anthony was supposed to graduate from Concordia in April 2020 but realized he was missing a course to graduate. He took FINA 200 in the summer and started a full-time job on September 1, 2020, at Microsoft. His gross annual salary as a Software Engineer is $75,000. He never filed a tax return and only recently filed his 2020 personal income tax returns once he realized the importance in filing and how easy it was. He is now looking for a tax estimate for his 2021 personal income tax returns to avoid surprises when filing his actual 2021 tax returns in April 2022.

-Given the information below, calculate Anthony's combined Federal and Quebec taxes payable. See Table A, use 2021 tax rates. Ignore Non-Refundable Tax Credits.Anthony estimates the following for 2021:

-Expects to receive a T4 tax slip from Microsoft reporting his 2021 gross annual salary of $77,250 (received a 3% on January 1, 2021, on his gross annual salary from 2020);

-Expects to receive a T5 tax slip with interest received in 2021 of $1,500.

-Sold 50 Microsoft shares on September 1, 2021, that he received a year ago as a signing bonus when he started working. He received the shares when they were valued at $300/share and recently sold them when they hit $380/share (he received a taxable benefit of $15,000 in 2020, which is the cost base of the shares when he started). All amounts are in Canadian dollars;

-Will be making a Tax-Free Savings Account (TFSA) contribution of $12,000 before the end of the year using some of the proceeds from the sale of his Microsoft shares; and

-Expects to make the maximum Registered Retirement Savings Plan (RRSP) contribution (calculate the maximum amount he can contribute knowing that his gross salary from September 1, 2020, to December 31, 2020 was $25,000). Microsoft does not have a pension plan.

Calculate Anthony's Taxes Payable:

1. What is Anthony's Marginal Tax Rate and Average Tax Rate?

2. Marginal Tax Rate?

3. Average Tax Rate?