Reference no: EM133456142

Cindy graduated in December 2021 and started her full-time job in January 2022 with a salary of $80,000. She never worked until her first job in 2022 but knew from her FINA 200 course to file a tax return throughout her university years to record her tuition so as to carry the tuition amounts forward to claim in future years when she would have income. The year 2022 will be the first year that Cindy claims the tuition non-refundable tax credit due to her employment income. Cindy's Federal tuition tax credit in 2021 was $4,200, (same for 2020 and 2019 for total tuition carryforward of $12,600). See Cindy's university 2021 tuition tax slip T2202 below which she filed in her 2021 tax return (and was the only line item in her personal tax return as she had no income; the same zero tax filing was done in 2019 and 2020, to record the tuition amounts only).

1. In 2022, Cindy's employer did not withhold sufficient income taxes and Cindy owes $2,000 to Canada Revenue Agency (CRA) on her 2022 Federal personal tax return. How much tuition can Cindy claim on her 2022 Federal personal tax return?

$________________

2. In 2022, Cindy's father owed $5,000 to Canada Revenue Agency (CRA) on his 2022 Federal personal income tax return so he asked Cindy to transfer her tuition tax credit and to provide him with her T2202 tax slip from Concordia. How much tuition can Cindy transfer to her father for him to use on his 2022 Federal personal income tax return?

$____________________________

3. Complete the sentences regarding Federal tuition:

In general, a student may transfer a maximum of $_________ of the current year's federal tuition amount.

Who can claim unused tuition credits (either all or some of the remainder not claimed)?

___________, or ___________, or ___________, or ___________ or ____________.