Omar graduated from Concordia in December 2018

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Omar graduated from Concordia in December 2018. He started working at the Royal Bank of Canada (RBC) as an investment advisor on January 1, 2019. In 2019, his gross annual salary was $95,000 plus commissions of $10,500. As his skills were in high demand, RBC had also paid him an $8,000 signing bonus to join them on his first pay cheque on January 15, 2019. With the bonus, he made contributions of $4,500 to a Registered Retirement Savings Plan (RRSP) and $3,500 to a Tax-Free Savings Account (TFSA); note that his Canada Revenue Agency (CRA) Notice of Assessment stated he could make RRSP contributions of up to $10,000 (based on his previous part-time work when he was a student), and up to $28,500 to his TFSA. We are currently July 1, 2020 and Omar is ready to file his 2019 personal income tax returns. As a resident of Quebec, calculate his combined 2019 taxes payable. (see Table A; ignore Non-Refundable Tax Credits, Quebec Abatement, and any employer withholdings)

a)     $37,294.72

b)     $36,149.45

c)     $39,325.98

d)     $38,260.12

e)     $37,615.58

TABLE A

2019 Combined Federal and Quebec Personal Income

Tax Brackets and Tax Rates

2019 Taxable Income

2019 Tax Rates

2019 Taxable Income

2019 Tax Rates

first $43,790

27.53%

over $95,259 up to $106,555

45.71%

over $43,790 up to $47,630

32.53%

over $106,555 up to $147,667

47.46%

over $47,630 up to $87,575

37.12%

over $147,667 up to $210,371

49.97%

over $87,575 up to $95,259

41.12%

over $210,371

53.31%