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Case #1 Individual Tax Return (5 marks)

Mr. Caldeira is employed by a large public corporation and for 2020 his salary was $69,000. He was a member of the companys pension plan and his contributions were matched by his employer. He contributed $800.84 to the plan and the amount shown on his T4 slip along with an entry of $1,601.68 in box 52 representing his pension adjustment. Union dues were deducted of $1,000.

During 2020, his employer withheld the following amounts from his compensation:

EI Premiums $856.36

CPP Contributions $2,898.00

Income Tax Deducted $5,300.00

He also made RRSP contributions of $200 a month for the year and had enough contribution room. Last year he had non-capital losses of $250 that he could not use in 2019 and was carry forward to 2020.

Mr. Caldeira owns 1,000 preferred shares of Iron Works shares, a publicly-traded taxable Canadian corporation and received four dividend payments of $102 and sold his shares and received proceeds of disposition of $36 per share and his adjusted cost base for each share was $20. Mr. Caldeira also received interest payments totaling $365 based on his balance in his savings account at the same bank and had carrying charges of $95.

Mr. Caldeira is the sole provider for the family and Lily his wife works part time and had a Net Income of $5,800. They have two young children Lois and Arsenio aged seven and eleven and paid medical expenses of $2,650 in 2020. He also contributed to various charities in the amount of $90 and his wife contributed $80 to local charities.

Required:

Determine Mr. Caldeiras Total Income, Net Income, Taxable Income, and the Net Federal Tax owing or refund for 2020 not including Provincial Taxes.

Step 3 Net income (Deductions)
RPP
RRSP
Child Care Expenses (Unit #4)
Moving Expenses (Unit #4)
Carrying Charges
Deduction for CPP (Use the CPP2020 Sheet)
					Net Income
Step 4 Taxable income (Deductions)
Security Option Deductions (Unit #5)
Non-capital losses of other years
Net Capital losses of other years
Capital Gains Deductions (Unit #7)
					Taxable Income

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