Calculate diego taxable income

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Reference no: EM132805939

Diego Garcia is 32 years old. Diego earned $112,000 in 2020 while employed as a financial analyst. The combined CPP and EI deduction during 2020 totaled $3,754. The following information was also provided pertaining to the 2020 taxation year:

a) Diego enrolled in part-time studies at the local university, paying tuition fees of $1,500.

b) Diego donated $2,000 to a registered charity for tax purposes.

c) During the year, a total of $4,500 was spent on eyeglasses, dental care, and prescriptions, and none of this amount was reimbursed.

d) Diego's spouse worked part-time and earned $5,000 in 2020.

e) Diego won $25,000 in a lottery

f) The couple does not have any children.

Required:

Problem A. Calculate Diego's taxable income for 2020.

Problem B. Calculate Diego's federal tax liability for 2020.

Reference no: EM132805939

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