Tax Homework

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
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
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)

Tax Homework

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Tax Homework

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The Tax homework includes:

1. Do tax practice questions (in this file)

4. Review tax powerpoint & your in-class notes

Employment income 50,000.00

Business income 25,000.00

Employment income 40,000.00

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

rned $5,000 of pension income in 2021.

What is her federal tax refund or balance owing?

Income Rate Taxes on bracket

rom her paycheques.

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

2021 Cumulative contribution limit if never contributed 75500

2009: Annual Limit 5000

Add: 2020 annual TFSA Limit 6000

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