The Tax homework includes:

1. Do tax practice questions (in this file)

See tab "Net income" (3 questions)
See tab "Calculate federal taxes" (2 questions)
See tab "TFSA" (3 questions)

2. Read TFSA CRA article- word document & PDF posted on OWL. Link to CRA site is also posted.

3. Practice examples from TFSA CRA article (highlighted in yellow in the CRA reading)

4. Review tax powerpoint & your in-class notes

Net income practice- 3 questions

Question 1

In 2021, Jacob had $50,000 of employment income, $6,000 of interest income, and $14,000 of capital gains. He also had $5,00
care expenses for his 4 year old child while he was working. He made an RRSP withdrawal of $2,000 in 2021, as well. Calculate
for 2021:

Employment income 50,000.00

Interest income 6,000.00
Taxable capital gains 7,000.00 ($14,000 * 50%)
Child care expenses -5,000.00
RRSP withdrawal 2,000.00
Net income 60,000.00

Question 2

In 2021, Leon had $25,000 of business income and $8,000 of rental income. He made an RRSP contribution of $13,000 in 2021
Leon's net income for 2021:

Business income 25,000.00

Rental income 8,000.00
RRSP contribution -13,000.00
Net income 20,000.00

Question 3
In 2021, Rachel had $40,000 of employment income and a $10,000 business loss. She also earned $5,000 of pension income in

Employment income 40,000.00

Business loss -10,000.00
Pension income 5,000.00
Net income 35,000.00
of capital gains. He also had $5,000 of deductible child
$2,000 in 2021, as well. Calculate Jacob's net income

P contribution of $13,000 in 2021, as well. Calculate

rned $5,000 of pension income in 2021.

Calculate federal taxes- 2 questions

Question 1
Brianne earned $75,000 taxable income in 2022. She was eligible for $4,000 in tax credits. Calculate her federal tax

Solution:
Income Rate Taxes on bracket
50197 0.15 7,529.55
24803 0.205 5,084.62
Federal taxes before credits 12,614.16
Less: tax credits -4,000.00
Federal taxes after credits 8,614.16 ANSWER

Question 2
Jasmine earned $114,000 taxable income in 2022. She was eligible for $5,000 in tax credits.
Throughout the year, her employer withheld $17,000 of total federal taxes from her paycheque.
Her employer also withheld $952.74 of EI premiums and $3,499.80 CPP premiums total from her paycheques.
Assume the CPP and EI withheld was exactly the right amount.

What is her federal tax refund or balance owing?

Solution:

Income Rate Taxes on bracket

50,197.00 0.15 7,529.55
50,195.00 0.21 10,289.97
13,608.00 0.26 3,538.08
Federal taxes before credits 21,357.60
Less: tax credits -5,000.00
Federal taxes after credits 16,357.60
Less: fed withholding tax paid -17,000.00
Federal tax refund -642.40 ANSWER

*Note- CPP and EI payments do not impact the federal tax balance owing/refund.
s. Calculate her federal taxes payable after credits in 2022?

rom her paycheques.

TFSA CONTRIBUTION ROOM HOMEWORK EXAMPLES

If you want to see a video of me going through the solutions to these homeork problems, you can
watch this video. The examples start at 2:30 of the video, after a brief TFSA review:
https://www.youtube.com/watch?v=z8sXmEQVq-I

1. Johnny turned 18 in 2017. He contributed $3,000 to his TFSA in 2017. In 2018, he

withdrew $1,000 from his TFSA. In 2019, he contributed $7,000. In 2020, he withdrew
$2,000. What is his 2020 and 2021 Unused TFSA Contribution room?

2017 5500
2018 5500
2019 6000
2020 6000
23000
2017 contribution -3000
2018 withdrawal 1000
2019 contribution -7000
2020 Unused TFSA Limit 14000
2020 Withdrawal 2000
2021 TFSA Limit 6000
2021 Unused TFSA Limit 22000

2. Jasmine turned 18 in 2002. She contributed $5,000 to her TFSA in 2009. Within the TFSA, she earned over $50,000 of
investment income between 2009 and 2021, so the account is now worth $55,000. What is her 2021 Unused TFSA
Contribution room?

2021 Cumulative contribution limit if never contributed 75500

Less: 2009 contribution -5000
2021 Contribution limit 70500

2009: Annual Limit 5000

2009: Contributions -5000
2009 unused room 0
Annual limits 2010 -2021 70500
2021 Unused Room 70500

3. Kelly turned 18 in 2020. She contributed $6,000 to her TFSA in 2020 and purchased shares of a company. The
company she invested in went bankrupt in 2020. What is her unused contribution room in 2020 and 2021?

Add: 2020 annual TFSA Limit 6000

Less: 2020 contributions -6000
2020 Unused Room 0
Add: 2021 annual TFSA Limit 6000
2021 Unused Room 6000

4. Also practice the examples in the CRA reading posted on OWL (i.e. Julie, Brayden, Josh, Amanda, Cedric, Jenny- see highligh
And read the CRA reading (9 pages). All content in the reading and homework examples are testable.
rned over $50,000 of
21 Unused TFSA

ompany. The
nd 2021?
Cedric, Jenny- see highlighted in the readings)