Reference no: EM132748992
Question: Owen and Sonja Cornell are married. They are the parents of two children:
Kirsten (born on July 1, 2000) and Ingrid (born on May 17, 2009). Ingrid does not have any income.
Kirsten (SIN 805 232 329) graduated from secondary school in June. She received a scholarship for her excellent work in school and has a T4A with $5,000 in Box 105. Kirsten took the summer off to do some traveling. In September, Kirsten began full-time study at the University of Your Province. She lives in a university residence during the academic year, but she uses River Road as her official address. In addition to tuition of $3,000, Kirsten spent $350 on books and $25 for student association fees. She has receipts for these expenses. Kirsten's T2202 shows that she attended university full-time for four months. She wants to transfer maximum tuition amounts to her father.
Owen works as a meteorologist and Sonja works part-time as a graphic artist. Their information slips are reproduced on the following pages.
Owen and Sonja paid the following medical expenses in 2019, for which they were not reimbursed by their insurance:
July 16, Kirsten: Dr. Wolf, orthodontist $2,100
August 15, Ingrid: Dr. Wolf, orthodontist $5,000
All year, Sonja: Chiropractor $2,500
Owen has official receipts for these expenses. The only other medical expenses the Cornells had in 2019 were the premiums for the health insurance plan Owen paid through his employer.
Sonja was in hospital for six weeks during the year, but all of her expenses were covered by their health plan. She paid Victoria Lipinski (SIN 805 212 438) $2,000 to care for Ingrid after school on the days she worked and for the six weeks she was in hospital.
2019 Tax Slips for Owen, Sonja and Kristen:
OWEN
T4
Box 14: 64,250.00
Box 16: 2,748.90
Box 24: 53,100.00
Box 26: 57,400.00
Box 18: 860.22
Box 20: 950.00
Box 52: 2,375.00
Box 22: 12,100.00
SONJA
T4
Box 14: 10,580.00
Box 16: 361.08
Box 18: 171.40
Box 22: 550.00
Box 24: 10,580.00
Box 26, 10,580.00
KRISTEN
T4A
Box 105: 5,000.00
KRISTEN
T2202
Box 11: 1
Box 19: 2019/09
Box 20: 2019/12
Box 22: 4
Box 23: $3,000.00
Box 25: 4
Box 26: 3,000.00
1. How much of the scholarship she received must Kirsten include in her income? Explain your answer.
2. Kirsten is filing her own tax return; will she receive a GST/HST credit? Why or why not?
3.How much of her expenses for books and association fees can Kirsten claim on her tax return? Explain your answer.
4. Explain how the child care expenses should be claimed (by whom and how much).
5. List below the medical expenses that can be claimed.
6. Who should claim the medical expenses? Explain your answer.
7. Calculate the amount of the medical expense to be claimed on Line 33099 and on Line 33199. Show your calculations for both Lines.
8. Complete the federal Schedule 11 and, where applicable, the provincial/territorial Schedule 11 for Kirsten.