Reference no: EM132853830

Exercises for Federal Non-Refundable tax

Problem 1.Age amount (tax credit):

Mr. Catch is 68 years old and has Net income for tax purposes in 2020 of $68,500. Calculate Mr. Catch's Age tax credit.

Problem 2.Molly Field is 72 years old and has 2020 NITP of 55,200.Calculate her Age tax credit.

Problem 3. Mack and Jan are married. During 2020, Jan had net income for tax purposes of $45,280 and Mack who is semi retired had NITP of $5,700. Jan has no other credits besides the basic tax credit and spousal tax credit. Assuming Mack does not have a mental or physical disability what would be the total of Jan's tax credits that she can claim on her 2020 tax return?

How would your answer change if Mack had a mental or physical infirmity?

Problem 4. Josh and Carmen are married. Josh has employment income of 72,000. His CPP is maxed out(for Step 5 Part B) $2,732 and he paid into EI $856. Carmen's NITP for 2020 is 6,580. They have 2 kids who have no income in 2020.
Calculation for CPP tax credits
MAX CPP $58,700 - $3,500 = $55,200 x 5.25% = $2,898 (this is what you pay)
MAX CPP $58,700 - 3,500 = $55,200 x 4.95% = $2,732.40LINE 30800 TAX CREDIT
Difference is the Enhanced CPP deduction $ 165.60 Line 22215 Deduction

Calculate Josh's tax credits:

Problem 5. Stacey Small has been divorced for years. She has custody of her three children ages 7, 10 and 16. Stacey has Net income for tax purposes of 55,000 (her portion of spousal support). Her eldest daughter has a part-time job and earned $2,300 in 2020.
Calculate Stacey's tax credits for 2020:

Problem 6. Clarence Nelson has several rental properties and earned a net $98,000 in 2020 (his only income). Clarence is married to June who had NITP of $3,700 for 2020. Their 28 year old daughter Faye has a mental disability. The disability is not severe enough to qualify for the disability tax credit. Faye has no income during the year and continues to live with Clarence and June. Calculate Clarence's tax credits for 2020.

Problem 7. Tim Daniels is married. He has NITP of $62,000 for 2020, his CPP is maxed out (for Step 5 Part B) at $2,732 and he paid into EI $856 employer. His wife Lisa has NITP of $10,200 for 2020. Lisa's mother Claire lives with them and has a physical infirmity that does not qualify for the disability tax credit but it does make her dependant on Tim and Lisa for her basic needs. Claire has NITP of $20,000 from her investments.

Problem 8. John Spade is 66 years old. In 2020 she had NITP of 62,800 which consisted of pension income from her employer, $7,400 OAS and $12,000 CPP. His spouse Jane is 58 and has NITP of 5,800. Calculate John's 2020 tax credits.

Attachment:- Federal Non-Refundable tax.rar