Part 1 Getting Started

Transcription

1 Answer key Part 1 Getting Started Q1: Amount of Refund: $00.00 Quarterly GST Credit Amount: $66.25 Monthly Trillium Benefit: $23.17 Q2: Quarterly GST/HST (Form Manager GSTC): $ Monthly Trillium Benefit (Form Manager Ontario Sales tax): $69.50 Schedule 1 Line 305: $10,822 ON428 Line 5816: $7,986 Tax Refund: $00.00 Q3: Quarterly GST/HST (Form Manager GSTC): $ Monthly Trillium Benefit (Form Manager Ontario sales tax): $92.67 Tax Refund (Form Manager T1General): $00.00 Can you E-File their tax returns? If not, how long is the tax return processing time? Since they are new immigrants, their tax returns cannot be Efiled in the first year. They have to mail paper return which takes 6-8 weeks to process.

2 Part 2 Simple Tax Returns Q1: a) Quarterly GST/HST Credit: $ b) Federal Tax Payable (Schedule 1): $ c) Ontario Tax Payable (ON428): $81.66 d) WITB (Schedule 6 & Line 453): $ e) Monthly Trillium Benefit: $23.17 f) Refund/(Balance Owing): $1, g) What expenses can Gerald claim against Commission Income? He cannot claim any employment expenses as he works inside the workplace. Q2: Tony Rose GST/HST Credit: $00.00 $ Federal Tax Payable: $ $00.00 Ontario Tax Payable: $ $00.00 Canada Employment Amount: $1, $00.00 Refund/Balance Owing: $2, $00.00 Working Income Tax Benefit: $ $00.00 Monthly Trillium Benefit: $00.00 $46.33

3 Q3: a) Quarterly GST Credit: $00.00 b) Federal Tax Payable: $5, c) Ontario Tax Payable: $2, d) Refund/Balance Owing: $2, e) Monthly Trillium Benefit: $00.00 f) Assume his social insurance number starts with digit 9. Can you E-file his tax return? Yes, we can efile his tax return. Q4: Claridge Graham Nancy Claridge Federal Tax Payable: $6, Federal Tax Payable: $10, Ontario Tax Payable: $3, Ontario Tax Payable: $4, Refund/Balance Owing: $ Refund/Balance Owing: $3, Ontario Trillium Benefit: $00.00 Quarterly GST credit for family: $00.00 Q5: Federal Tax Payable: $ Ontario Tax Payable: $00.00 Working Income tax Benefit: $00.00 Refund/Balance Owing: $1.70 Trillium Benefit: $58.33 a) What questions would you ask her? Any other source of income. b) Can she make instalment payments? Not required to make instalment payments since owing is only $1.70.

4 c) How much interest does CRA charge? Since the amount is less than $2, no interest will be calculated. d) What payment options are available to her? Since the amount is less than $2, there is no need to make a payment. Q6: Give the Values for the following figures: Schedule 1 Line 365: $ Schedule 1 line 367: $4, Federal Tax Payable: $ Monthly Trillium Benefit: $77.85 Ontario Tax Payable: $ Refund/Bal. Owing: $3, Quarterly GST Credit: $202 Q7: Schedule 1 Line 303: $00.00 ON428 Line 5812: $00.00 Federal Tax Payable: $2, Ontario Tax Payable: $1, Quarterly GST Credit: $ Monthly Trillium Benefit: $61.98 Refund/Balance Owing: $ Q8: Quarterly GST Credit: $66.25 Sch 1 Line 303: $10,822 Federal Tax Payable: $40.97 ON428 Line 5812: $7, Ontario Tax Payable: $ Refund/Balance Owing: $1, Monthly Trillium Benefit: $23.17 Working Income Benefit: $00.00

5 Part 3 Family Tax Returns Q1: Mac Lopez Amanda Lopez GST credit: $91.26 quarterly Refund/Balance Owing: $ Refund/Balance Owing: $ Trillium Benefit: $51.04 monthly Line 117: $1600 Q2: Kevin Molly Federal Tax Payable: $00.00 Federal Tax Payable: $00.00 Ontario Tax Payable: $00.00 Ontario Tax Payable: $00.00 Refund/Balance Owing: $1, Refund/Balance Owing: $80.00 Quarterly GST Credit: $ Monthly Trillium Benefit: $42.21 (a) You have already E-filed their tax returns. They forgot to give you rent information. They paid rent of $900 per month to Debar Properties for the full year. Adjust Kevin Matel s tax return. What documents are required for adjustment? Rent receipt (b) Should parents file tax returns too? Explain why. Yes, they should file tax returns in order to get GSTC & provincial tax credits. (c) If yes, prepare parents tax returns. How much GST credit and tax refund will they get? Quarterly GST credit: $ Monthly Trillium benefit: $46.30 Tax Refund: $00.00

6 Q3: Can she apply for Working Income Benefit? She is not eligible because she has no working income. Complete the following: Line 117: $1,400 Quarterly GST Credit: $ Monthly Trillium Benefit: $ Q4: Give values for the followings: Benjamin Kalara Sonia Kalara Line 145: $6,000 Line 145: $00.00 Tax Refund: $1, Quarterly GST Credit: $ WITB: $1, Monthly Trillium Benefit: $196.50

7 Q5: (a) Should Sunny file his own taxes? Explain why? Yes, he should file his tax return in order to get GSTC & provincial tax credits. (b) Should Sofia file a separate tax return? Explain. Yes, Sofia should file a separate tax return in order to get GSTC & provincial tax credits. (c) What questions would you ask her about Sofia? Health related questions about Sofia. There could be a possibility of Disability Tax Credit. (d) Complete the following for Patricia Taylor: Ontario tax: $300 Federal tax: $ Refund/Balance Owing: $3, Line 305: Fed $10,822 Line 5816: Ont $7,986 Line 315: Fed $00.00 Line 5840: Ont $00.00 Line 318: Fed $00.00 Line 5848: Ont $00.00 Line 365: Fed $300

8 Part 4 Student Tax Returns Q1: (a) Calculate the following: Federal Tax Payable: $00.00 Schedule 1 Line 323: $00.00 Ontario Tax Payable: $00.00 ON428; Line 5856: $3, Tuition amount carry forward (federal): $ Tuition amount carry forward (provincial): $00.00 WITB: $00.00 Refund/Balance Owing: $842 Monthly Trillium Benefit: $23.17 (b) What documents does he require to give his father to transfer his tuition fees? T2202 signed and Sch 11 for federal & provincial Q2: Federal Tax Payable: $00.00 Ontario Tax Payable: $00.00 Federal tuition c/fwd: $10, Provincial tuition c/fwd: $8, Line 319: $00.00 Line 323: $1, Tax Refund: $ Working Income Tax Benefit: $00.00 Monthly Trillium Benefit: $23.17

9 Q3: Give values for the following: Federal Tax Payable: $00.00 Ontario Tax Payable: $00.00 Federal tuition c/fwd: $8, Provincial tuition c/fwd: $8, Refund/balance owing: $70 Monthly Trillium Benefit: $23.17 Q4: Give values for the following: Line 421: $ Line 364: $00.00 Federal Tax Payable: $00.00 Ontario Tax Payable: $00.00 Max. tuition transferable Federal: $5,000 Max. tuition transferable Prov: $6, Federal tuition c/fwd: $5,570 Provincial tuition c/fwd: $,4335 Refund/balance owing: $414.74

10 Part 5 _Deductions & Credits Q1: a) Give values for the following: Tax Refund: $3, Quarterly GST/HST credit: $101 Monthly Trillium Benefit: $64.50 b) Heather Hull 2012 Tax return: Tax Refund: $ Quarterly GST/HST credit: $66.25 Monthly Trillium Benefit: $23.17 c) What questions would you ask Heather to see if she qualifies for Old Age Security benefits? Residency related questions to make sure that how long she is living in Canada in order to qualify for OAS. Q2: Calculate the following amounts: NIT DIANA Fed tax: $00.00 Fed tax: $00.00 Ontario tax: $291 Ontario tax: $00.00 Line 214: Fed $00.00 Quarterly GST/HST credit: $202 Line 303: Fed $8, Monthly Trillium Benefit: $89.75 Line 330: Fed $00.00 Refund/balance owing: $ Line 5812, Ontario $5, Line 5868, Ontario $00.00 Refund/balance owing: $3,164.65

11 Q3: a) Prepare Bruce's Form T1M. Prepare his tax return. (b) Complete the followings: Line 219: $20,180 Line 435: $ Tax Refund/Balance Owing: $4, (c) How would your answer be different if he didn t keep any receipts? What deductions would you be able to claim? If he doesn t have receipts, moving expenses for travel and meals could be claimed under simplified method. Q4: Give values for the following: Line 156: $00.00 Line 128: $00.00 Line 435: $300 Tax Refund/Balance Owing: $3,987 Q5: Give values for the following: BINOY YASMIN Line 214: $00.00 Line 448: $20 Line 318: $00.00 Line 450: $00.00 Line 5872: $10,664 Line 323: $00.00 Line 331: $10,664 Line 479: $00.00 Line 435: $33, Tax Refund/Balance Owing: $20 Line 365: $1,360 Tax Refund/Balance Owing: $10,220.36

12 Part 6 Seniors & Investments Q1: Quarterly GST Credit: $101 Total Income: $22, Federal Tax Payable: $00.00 Ontario Tax Payable: $00.00 Refund/Balance Owing: $520 Monthly Trillium Benefit: $93.42 Q2: Joan Bob Trudy Philips Quarterly GST Credit: $ Monthly Trillium benefit: $76.15 Federal Tax Payable: $00.00 Federal Tax Payable: $00.00 Ontario Tax Payable: $ Ontario Tax Payable: $00.00 Refund/Balance Owing: $2, Refund/Balance Owing: $00.00 Can they make an election to split pension income and how much they should split? Explain? No, they cannot split pension income because Old Age pension and Canada pension plan is not eligible for pension splitting. Q3: She wants to apply for Senior s Property Tax Grant. What steps will you follow? Complete the form ON BEN. Complete the following: Line 150: $29, Line 236: $29, Line 235: $00.00 Line 260: $21, Line 422: $00.00 Refund/Balance Owing: $934.60

13 Q4: Quarterly GST Credit: $00.00 Total Income: $54,400 Federal Tax Payable: $3, Ontario Tax Payable: $2, Refund/Balance Owing: $ Monthly Trillium Benefit: $43.61 Ricardo wants to split pension income with his wife. He wants to know the following: Ricardo Jade Tax Payable before splitting pension income: $6, $00.00 Tax Payable after splitting pension income: $3, $25.75 Tax Savings by splitting pension income: $1, $1, Q5: Stuart King Caroline King Line 114: $00.00 $2,500 Line 330: $6450 $00.00 Federal Tax Payable: $1, $00.00 Ontario Tax Payable: $1, $00.00 Refund/Balance Owing: $ $00.00 Can Caroline split pension income with her deceased husband? Yes, Caroline can split pension income with her deceased husband. If yes, complete T1032.