Here are some preliminary details and data about a single woman with no dependents.She needs your help computing and filing her 2023 income taxes (due in mid-2024). Sheearns a salary of $180,000 and is a resident of Ontario. Below is a list of her financialexpenses/activities during the 2023 tax year, which may (or may not) be relevant tocomputing her taxes.1. She made the maximum contribution to CPP and EI for 2023 (you can ignore CPPenhancement for simplicity)2. She made an $6000 donation to Sick Kids Toronto.3. She contributed $20,000 to a TFSA, invested in a GIC earning 5% in 2023.4. She contributed $25,000 to her RRSP and invested in a balanced internationalequity mutual fund which earned only 5% as capital gain by the end of 2023. Shebelieves that 5% is too low. So, she liquidated all her mutual fund units at the endof 2023 and invested all her RRSP money in the bond market.5. She invested $15,000 into a taxable investment account and earned only 4% ascapital gain by the end of 2023 on S&P500 ETFs. Like her decision about herRRSP, she sold all her ETFs at the end of 2023 and invested the money in thebond market.6. She has also a stock portfolio in her taxable account. The value of her portfolioincreased from $38,000 at the beginning of 2023 to $52,000 at the end of 2023.The portfolio was kept intact without any trades during 2023 but she received$1,000 as dividend in 2023.7. She had medical expenses, for which she was *not* reimbursed by her employer’sinsurance company totaling $8,500.8. She paid a total of $48,000 in (personal) home mortgage payments, of which$28,000 was interest.9. She gave $2,000 as a gift to her younger brother who is 21 years old.You should look up the amounts and list of credits/deductions online from the relevantwebsites.Part A: What is her taxable income? Also, please compute the total amount due (Federaland Provincial) in taxes for the 2023 tax year (due in mid-2024). You must show yourwork for all calculations.Part B: What is her average tax rate? What is her marginal tax rate?
Here are some preliminary details and data about a single woman with no dependents.She needs your help computing and filing her 2023 income taxes (due in mid-2024). Sheearns a salary of $180,000 and is a resident of Ontario. Below is a list of her financialexpenses/activities during the 2023 tax year, which may (or may not) be relevant tocomputing her taxes.1. She made the maximum contribution to CPP and EI for 2023 (you can ignore CPPenhancement for simplicity)2. She made an $6000 donation to Sick Kids Toronto.3. She contributed $20,000 to a TFSA, invested in a GIC earning 5% in 2023.4. She contributed $25,000 to her RRSP and invested in a balanced internationalequity mutual fund which earned only 5% as capital gain by the end of 2023. Shebelieves that 5% is too low. So, she liquidated all her mutual fund units at the endof 2023 and invested all her RRSP money in the bond market.5. She invested $15,000 into a taxable investment account and earned only 4% ascapital gain by the end of 2023 on S&P500 ETFs. Like her decision about herRRSP, she sold all her ETFs at the end of 2023 and invested the money in thebond market.6. She has also a stock portfolio in her taxable account. The value of her portfolioincreased from $38,000 at the beginning of 2023 to $52,000 at the end of 2023.The portfolio was kept intact without any trades during 2023 but she received$1,000 as dividend in 2023.7. She had medical expenses, for which she was *not* reimbursed by her employer’sinsurance company totaling $8,500.8. She paid a total of $48,000 in (personal) home mortgage payments, of which$28,000 was interest.9. She gave $2,000 as a gift to her younger brother who is 21 years old.You should look up the amounts and list of credits/deductions online from the relevantwebsites.Part A: What is her taxable income? Also, please compute the total amount due (Federaland Provincial) in taxes for the 2023 tax year (due in mid-2024). You must show yourwork for all calculations.Part B: What is her average tax rate? What is her marginal tax rate?
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 56P
Question
Here are some preliminary details and data about a single woman with no dependents.
She needs your help computing and filing her 2023 income taxes (due in mid-2024). She
earns a salary of $180,000 and is a resident of Ontario. Below is a list of her financial
expenses/activities during the 2023 tax year, which may (or may not) be relevant to
computing her taxes.
1. She made the maximum contribution to CPP and EI for 2023 (you can ignore CPP
enhancement for simplicity)
2. She made an $6000 donation to Sick Kids Toronto.
3. She contributed $20,000 to a TFSA, invested in a GIC earning 5% in 2023.
4. She contributed $25,000 to her RRSP and invested in a balanced international
equity mutual fund which earned only 5% ascapital gain by the end of 2023. She
believes that 5% is too low. So, she liquidated all her mutual fund units at the end
of 2023 and invested all her RRSP money in the bond market.
5. She invested $15,000 into a taxable investment account and earned only 4% as
capital gain by the end of 2023 on S&P500 ETFs. Like her decision about her
RRSP, she sold all her ETFs at the end of 2023 and invested the money in the
bond market.
6. She has also a stock portfolio in her taxable account. The value of her portfolio
increased from $38,000 at the beginning of 2023 to $52,000 at the end of 2023.
The portfolio was kept intact without any trades during 2023 but she received
$1,000 as dividend in 2023.
7. She had medical expenses, for which she was *not* reimbursed by her employer’s
insurance company totaling $8,500.
8. She paid a total of $48,000 in (personal) home mortgage payments, of which
$28,000 was interest.
9. She gave $2,000 as a gift to her younger brother who is 21 years old.
You should look up the amounts and list of credits/deductions online from the relevant
websites.
Part A: What is her taxable income? Also, please compute the total amount due (Federal
and Provincial) in taxes for the 2023 tax year (due in mid-2024). You must show your
work for all calculations.
Part B: What is her average tax rate? What is her marginal tax rate?
She needs your help computing and filing her 2023 income taxes (due in mid-2024). She
earns a salary of $180,000 and is a resident of Ontario. Below is a list of her financial
expenses/activities during the 2023 tax year, which may (or may not) be relevant to
computing her taxes.
1. She made the maximum contribution to CPP and EI for 2023 (you can ignore CPP
enhancement for simplicity)
2. She made an $6000 donation to Sick Kids Toronto.
3. She contributed $20,000 to a TFSA, invested in a GIC earning 5% in 2023.
4. She contributed $25,000 to her RRSP and invested in a balanced international
equity mutual fund which earned only 5% as
believes that 5% is too low. So, she liquidated all her mutual fund units at the end
of 2023 and invested all her RRSP money in the bond market.
5. She invested $15,000 into a taxable investment account and earned only 4% as
capital gain by the end of 2023 on S&P500 ETFs. Like her decision about her
RRSP, she sold all her ETFs at the end of 2023 and invested the money in the
bond market.
6. She has also a stock portfolio in her taxable account. The value of her portfolio
increased from $38,000 at the beginning of 2023 to $52,000 at the end of 2023.
The portfolio was kept intact without any trades during 2023 but she received
$1,000 as dividend in 2023.
7. She had medical expenses, for which she was *not* reimbursed by her employer’s
insurance company totaling $8,500.
8. She paid a total of $48,000 in (personal) home mortgage payments, of which
$28,000 was interest.
9. She gave $2,000 as a gift to her younger brother who is 21 years old.
You should look up the amounts and list of credits/deductions online from the relevant
websites.
Part A: What is her taxable income? Also, please compute the total amount due (Federal
and Provincial) in taxes for the 2023 tax year (due in mid-2024). You must show your
work for all calculations.
Part B: What is her average tax rate? What is her marginal tax rate?
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