Coral’s taxable income is $71,880. Calculate her tax payable before tax credits.

Taxable income 71880

Tax payable on taxable income
0 53359 53359 15% 8,003.85
53359 106717 18521 20.50% 3796.81
Tax payable on taxable income 11,800.65
NRTCs Basic personal amount 15000 15% 2,250.00
Net federal tax 9,550.65

Terry has taxable income of $195,000. Calculate her tax payable before tax credits.
Taxable income 195000
Tax payable on taxable income
0 53359 53359 15% 8,003.85
53359 106717 53358 20.5% 10,938.39
106717 165430 58713 26% 15,265.38
165430 235675 29570 29% 8,575.30
Tax payable on taxable income 42,782.92
NRTCs Basic personal amount 14377 15% 2,156.61
Net federal tax 40,626.31

Where net income is between 165,430 and 235,675:

15,000 - (1,479 x (net income-165,430)/70,245) = 14377.40722

14377.40722
Mr. Jerryson has Net Income For Tax Purposes of $250,000 from employment and was
married on December 1. His wife, an accounting student, had salary of $27,500 for the period
from January 1 to November 30 and $2,500 for the month of December.

Taxable income 250000

Tax payable on taxable income
0 53359 53359 15% 8,003.85
53359 106717 53358 20.5% 10,938.39
106717 165430 58713 26% 15,265.38
165430 235675 70245 29% 20,371.05
235675 + 14325 33% 4,727.25
Tax payable on taxable income 59,305.92
NRTCs Basic personal amount 13521
Canada employment 1368
CPP 3123
EI 1002
19014 15% 2,852.10
Net federal tax 56,453.82

Mr. Jones is married and has Net Income For Tax Purposes from employment of $70,000. His
19 year old dependent son attends university. His wife has Net Income For Tax Purposes of
$1,200, and his son has Net Income For Tax Purposes of $2,900. His son does not wish to
transfer his tuition and education credits.

Taxable income 70000

53359 15% 8004
16641 20.50% 3411
Tax payable on taxable income 11415
NRTCs Basic personal 15000
Spousal 13,800
CPP 3,123
EI 1002
Canada employm 1368
34293 15% 5144
Net federal tax 6271

Ms. Morrison is divorced, maintains a residence far from her former spouse, and receives
$1,000 per month in child support payments. She has custody of the two children from the
marriage. They are aged seven and ten and have no income of their own. Her Net Income For
Tax Purposes from employment is $50,000.

Taxable income 50000

15% 7500
NRTCs Basic personal 15000
Eligible dependent 15000
Canada employment 1368
CPP 2301.75
EI 815
34484.75 15% 5172.71
Net federal tax 2327.29
taxable income 250000
Tax on first 235675 54578
Tax on the rest 4727.25
Gross federal income tax payable 59305.25
NRTCs
BPA 13521
Canada employment 1368
EI 1002
CPP 3123
19014 2852.1
56453.15

taxable income 70000

tax on first 53359 8004
tax on the rest 3411.405
Gross income tax payable 11415.4
NRTCs 15000
CPP 3123
EI 1002
Canada employment 1368
Spousal 13800
34293 5143.95
Net federal tax 6271.455

Taxable income 50000

Gross federal income tax payable 7500
NRTCs
CPP 2301.75
EI 815
Canada employment 1368
BPA 15000
Eligible dependent 15000
34484.75 5172.713
2327.288
Net & taxable income

Tax payable on taxable incom

NRTCs Basic personal amount
Eligible dependent
Caregiver
Less: 15% over 18783
able income 85000
53359 15% 8003.85
31641 20.50% 6486.41
Tax payable on taxable income 14490.255
Basic personal amount 15000
Eligible dependent 15000
7999
Less: 15% over 18783 0 7999
37999 15% 5699.85
Net federal tax 8790.40
Net & taxable income

Tax payable on taxable i

NRTCS Basic personal amount
Spousal

Disability
Transfer disability
Transfer disability
Disability Supplement <
Caregiver
Canada Employment
CPP
EI
Medical

or
t & taxable income 72000
53359 15% 8003.85
18641 20.50% 3821.40
Tax payable on taxable income 11825.26
Basic personal amount 15000
Spousal 15000
+ caregiver 2499
- NI -9600 7899
Add'l amount? 100
Disability Self 9428
Transfer disability Spouse 9428
Transfer disability Child 9428
Disability Supplement < 18 5500
Caregiver child 2499
Canada Employment 1368
CPP 3123
1002
Medical 3100
deduct the lesser of:
2635
3% of NI 2160 2160 940
65715 15% 9857.25
Net federal tax 1968.00
Employment withholding tax 15000
Refund Due -13032.00
 Net & taxable income

Tax payable on taxable income

NRTCs
Basic personal
Spousal with caregiver
Pension
Canada Employment
CPP
How does your answer change if pension income was $27,000 and employment income EI
was $20,000? Age
Net & taxable income 47000 Transfer from spouse
15% Age
Tax payable on taxable income 7050 Disability
NRTCs Tuition
Basic personal 15000
Spousal with caregive 17499 No balance owing
Pension 2000
Canada Employment 1368
CPP 816.75
EI 326
Age 7696.25
Transfer from spouse
Age 8396
Disability 9428
Tuition 2200
64730 9709.50
No balance owing 0
 42000
15%
on taxable income 6300

15000
17499
2000
1368
717.75
293.4
8396

8396
9428
2200
65298.15 9794.72
o balance owing 0
 Taxable Income

Tax payable on taxable incom

NRTCs Basic personal
Spousal
Disability transfer
Caregiver
Canada employment
Add: For Jerry & his wife, they had medical expenses of $5,000. CPP
EI
87833 Medical expenses

deduct the lesser of 2635

or 3000
Son
deduct the lesser of 2635
or 0
 100000
53359 15% 8003.85
46641 20.50% 9561.40
Tax payable on taxable income 17565.255
Basic personal 15000
15000
Disability transfer 9428
7999
Canada employment 1368
2600
900
Medical expenses
5000
2635
2365
17000

0 17000
71660 15% 10749
Net federal tax 6816.255
Federal withholding tax 20000
Refund due -13183.745
 Net & taxable income

Tax payable on taxable income

NRTCs Basic personal
Canada Employment
CPP
EI
Marissa's income is from employment. Medical 6900
Marissa's employer deducted $3,800 CPP, $1,020 EI and deduct the lesser of:
$9,000 in federal income tax. 2635
Her spouses net income is $100,000. 3% of NI 1920 1920
student 1800
deduct the lesser of:
CPP deducted 3800 2635
60500 5.95% 3600 3% of NI 390 390

Net federal tax

Deduct: Employment withholding
CPP overpayament
EI Overpayment
 64000
53359 15% 8003.85
10641 20.50% 2181.405
10185.26
15000
1368
2995
1002

4980

1410
26754.75 15% 4013.21
6172.04
ent withholding 9000
200
18
Refund Due -3046.21
•Chen has net & taxable income of $217,000 and has made charitable donations of $5,000. Net and taxable income of $2
Charitable Donations 5000 Net and taxable income
on the 1st 200 15% 30
remainder 4800 29% 1392 Income in the top tax brac
Tax credit 1422
Net and taxable income of $237,000 with donations of $5000.
Net and taxable income 5000
on the 1st 200 15% 30
Income in the top tax bracket 1325 33% 437.25
Remainder 3475 29% 1007.75
Tax credit 1475
 No tax credit
May qualify for a provincial tax credit

500
500
500
1500
400 75%
350 50%
525 33%
Tax credit
No available credit 225
fy for a provincial tax credit

300
175
175
650 maximum
 Marginal Tax pay
tax rate on TI
Public corp. eligible dividends 7000 1.38 9660 Taxable dividend 15% 1449
Private corp. non-eligible divide 9000 1.15 10350 Taxable dividend 15% 1552.5
3001.5
Dividend tax credit DTC Net tax
Eligible dividend 15.02% 1450.93 -1.93
Non-eligible dividend 9.03% 934.62 617.88
Son's income 13371 Net & taxable income 70000
NRTCs Basic personal 15000 53359 15%
son does not need -1629 16641 20.5%
tax credits to wipe Tax payable on taxable income
out tax liability NRTCs Basic personal 15000
Spousal 13800
Tuition 8200 Canada Employment 1368
Son needs to claim 0 CPP 3123
Transfer to father 5000 EI 1002
Tuition carryover 3200 Transfer Tuition 5000
39293 15%
Net federal tax

What if son's income was 17,000?

Son's income 17000 Net & taxable income 70000
NRTCs Basic personal 15000 53359 15%
Son needs 2,000 of 2000 16641 20.5%
tuition tax credit to Tax payable on taxable income
wipe out tax -2000 NRTCs Basic personal 15000
Tax payable 0 Spousal 13800
Canada Employment 1368
CPP 3123
Tuition 8200 EI 1002
Son needs to claim 2000 Transfer Tuition 3000
Transfer to father 3000 37293 15%
Tuition carryover 3200 Net federal tax
 8003.85
3411.405
11415.26

5893.95
5521.305

8003.85
3411.405
11415.26

5593.95
5821.305