MAF1004H - Week 4- September 30 2020- Tax Notes PDF

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Summary

Taxation...

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Tax Session 2 – Learning Outcomes 6.1.1 Discusses general concepts and principles of income taxation 6.3.1 Evaluates general tax issues for an individual 6.3.2 Evaluates income taxes payable for an individual Sample case writing

Computation of Tax for Individuals

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The T4 slip received by Mr. Tax for the 2019 year reported the following: Employment Income: CPP:

$2,749

EI:

$860

$154,000

Income Taxes Withheld: $40,000 His spouse earned $2,000 of employment income. Compute his Federal income tax liability for the 2019 taxation year. Assume that the provincial income tax is nil.

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MGAC50

Federal Income Tax Non-refundable tax credits: Basic Personal Amount Spousal ($12,069 - $2,000) CPP Employment Insurance Premium Canada Employment Amount

Federal Income Tax Liability Less: Taxes Withheld Payable (Refund)

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32,371.57

12,069 10,069 2,749 860 1,222 26,969 15% (4,045.35) 28,326.22 (40,000.00) (11,673.78)

MGAC50

Additional Reading • Please make sure to read personal taxation related materials found on CPA Competency Map Study Notes 2019 Edition, Densmore Consulting Services, by Kathy Wolfe (referred to herein as DCS).

MAF1004H Sathees Ratnam -UTSC

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Research Platform • Please make sure to become familiar with the Research

Platform. •

Access the Income Tax Research platform via

https://edu-knotia-ca.myaccess.library.utoronto.ca/Knowledge/Home.aspx?productID=893

•

No crib-sheet is allowed on mid-term or final. Students have to learn to use access the Tax Research platform to become familiar with where to locate CCA rates, Income Tax Rates, Stanby charge and Operating Cost Benefit calculation, etc.

MAF1004H Sathees Ratnam -UTSC

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