Reference no: EM132715010

Question - Mr. Wallace Burns is a very successful executive with a Canadian public company. During 2020, he had net employment income $96,000, interest income of $166 and a capital loss of $10,000. His employer withheld maximum EI of $856 and maximum CPP of $2,898.

Wallace is married to Sharon Burns. Sharon has Net Income For Tax Purposes of $5,785. Wallace and Sharon have two children, Sonia who is 10 years old and Zack who is 8 years old. Neither child has any income during the year, and both are healthy. Wallace's 87-year old infirm father, Bruce, lives with them and Wallace takes care of his father, as his father only has net income for tax purposes of $15,000 for 2020.

The family's eligible medical expenses were as follows:

Wallace $800

Sharon 1,200

Sonia 4,600

Zack 3,700

Total $10,300

Wallace also makes contributions to a federal political party in the amount of $1,200.

Required - First calculate Wallace's Taxable Income. Then, calculate Wallace's federal income tax before tax credits. Finally, calculate Wallace's minimum federal income tax after tax credits for 2020. Indicate any carry overs available to him and his dependants and the carry forward provisions. Ignore any tax amounts that Wallace might have had withheld or paid in instalments.