Diego Garcia is 32 years old

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Diego Garcia is 32 years old. Diego earned $112,000 in 2020 while employed as a financial analyst. The combined CPP and EI deduction during 2020 totaled $3,754. Of this amount, $166 was the CPP enhanced contribution. The following information was also provided pertaining to the 2020 taxation year:

 

a) Diego enrolled in part-time studies at the local university, paying tuition fees of $1,500.

b) Diego donated $2,000 to a registered charity for tax purposes, and $800 to a federal political party.

c) During the year, a total of $4,500 was spent on eyeglasses, dental care, and prescriptions, and none of this amount was reimbursed.

d) Diego's spouse did not work during 2020 while attending full-time post-secondary classes which cost $8,000 in tuition. The maximum allowed amount was transferred to Diego for 2020 tax purposes. Diego's spouse had no other income during the year.

e) Diego has a $2,000 non-capital loss from 2019.

f) The couple does not have any children.

 

Required:

 

A. Calculate Diego's taxable income for 2020.

B. Calculate Diego's federal tax liability for 2020.

 

Assignment #4 - Grading is on requirement B) only. To get from Net Income to Taxable Income, subtract the Non-Capital Loss Carryover amount in item e) and subtract CPP Enhanced Contributions from Net Income.

Note: Federal Tax Liability = Taxes Payable after tax credits; they are the same thing.

Please help with solving this question! (Required B)