Laura Fallon was born on July 3, 1989, is single, and works as a manager for a manufacturing company in Ontario. The following is contained on Laura’s 2018 T4 slip from her employer:

Employment income $76,500

Employment Insurance premium 902

Canada Pension Plan contribution 2,403

Registered Pension Plan contribution 6,100

Income Tax paid (deducted by employer) 16,433

On November 14, 2018, Laura contributed $3,000 to her RRSP and received a receipt for income tax purposes. She contributed this amount because her accountant advised her that she would be able to fully claim it in 2018. In late 2015, she purchased $37,000 worth of Suncor Energy Corporation’s shares which she financed with an investment loan that charged her $1,100 in interest during 2018. During 2018, she received $1,400 in dividends from her shares. Late in 2018, Laura sold all of her shares for proceeds of $46,000. She also received $250 in interest income from her savings amount of $25,000 in her financial institution.

Prepare Laura’s 2018 federal income tax return by using the following steps:

Step 1: Calculate Total Income

Step 2: Calculate Net Income by subtracting deductions

Step 3: Calculate Taxable Income (same as Net Income)

Step 4: Calculate Net Federal Tax Payable

Step 6: Calculate applicable (non-refundable) Tax credits

Step 7: Calculate Tax owed or Refund

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