Reference no: EM133011126

Question - Individual Tax Payable - Cases - Mr. William Norris is 45 years old. The following five independent Cases make varying assumptions for the 2019 taxation year with respect to Mr. Norris' marital status and number of dependants. In all Cases, Mr. Norris earned employment income of $60,000 and his employer withheld the required EI premiums and CPP contributions.

Case A Mr. Norris is married and his wife, Susan, has Net Income for Tax Purposes of $8,800. Susan' s 73-year-old mother, Bernice, lives with them. Bernice has a mental infirmity that is not severe enough to qualify for the disability tax credit. However, it does make her dependent on William and Susan. Because of a large investment portfolio, Bernice had Net Income for Tax Purposes of $18,000 during 2019.

Case B Mr. Norris is married and his wife, Susan, has Net Income for Tax Purposes of $4,410. They have one child, Martha, who is 10 years of age. Martha had no income during the year. During the year, the family had medical expenses as follows:

William $1,200

Susan 1,600

Martha 350

Total $3,150

Case C Mr. Norris is married and his wife, Susan, has Net Income for Tax Purposes of $4,500. They have a son, Allen, who is 19 years old and lives at home. He attends university on a full-time basis during 8 months of the year. Mr. Norris pays $9,000 for Allen' s tuition and $900 for required textbooks. Allen had employment income during the summer months of $2,200. He will transfer any unused credits to his father.

Case D Mr. Norris is not married and has no dependants. On receipt of a $300,000 inheritance in December, he donates $50,000 to his local hospital, a registered charity. He chooses to claim $15,000 in 2019. He also makes contributions to a federal political party in the amount of $1,000.

Case E Mr. Norris is a single father. He has a daughter, Mary, who is 8 years old and lives with him. Two years ago, Mr. Norris graduated from a Canadian university. He currently has a Canada Student Loan outstanding. Mr. Norris pays back this loan in monthly installments of $300. During the year, he paid $450 in interest on this loan.

Required - In each Case, calculate Mr. Norris' minimum federal Tax Payable for 2019. Indicate any carry forwards available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Mr. Norris might have had withheld or paid in installments.