question archive Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old
Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old
Subject:LawPrice: Bought3
Manuel Liriano is 40 years old, married and has 2 children aged 2 and 8 years old. He is employed at MOT Consulting and has an annual salary of $157,000. He has asked you whether he will have a tax payable or tax refund for 2019 (ignore provincial taxes). Other information he shared with you is as follows: • His employer paid for the $300/month underground parking spot at the company's head office • His employer gave him a $3,000 flat-screen tv as an award for his 10-year work anniversary. • His employer gave him a $25 t-shirt for him to wear on the annual Terry Fox Run • His employer paid $2,200 in premiums for him towards his membership in the company-sponsored group disability plan • He earned $6,500 in interest on his investments • Manuel made an RRSP contribution of $12,000 and paid professional dues of $1,500. • Manuel and his spouse did not incur any childcare expenses during the year. • He is required by his employer to use his own automobile in the course of his employment. His total automobile costs for the year, including lease costs, gas, repairs and maintenance, are $12,000. He drove his car 24,000 kilometres during the year. 10,000 kilometres of this amount was for employment purposes. • His spouse had employment income in 2019 of $4,000 from her part-time job. • His employer made the required CPP and EI withholdings from his semi-monthly pay cheques throughout the year. • Manuel was enrolled as a part-time student at Seneca College and took two courses during the year at a cost of $3,600. • Manuel made charitable donations of $3,000 in 2019. • Manuel incurred medical expenses of $5,600 for his family for the 12 month period ending on September 30, 2019. This was the 12 month-period ending in 2019 for which he incurred the highest amount of medical expenses. For the 2019 calendar year his medical expenses for his family totaled ($5,200). • His employer deducted federal income tax of $25,750. REQUIRED: Complete the relevant lines of the following tax forms to determine Manuel's: a. Employment Income (4 marks) b. Total Income (1 mark) c. Net Income (4 marks) d. Taxable Income (1 mark) e. Non-refundable tax credits (10 marks) f. Federal tax liability (3 marks) g. Federal tax payable or refund (2 marks)
