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8 Fundamentals of Income Tax - Case Study 2019 1. For each of the following income types and for each family member (if appli ember (if applicable): Itemize all amounts of this type (indicate who received it and how much) Determine how much of this income, if any, is required to be reported on a return. For each taxpayer, state the line(s) on the tax return or forms/schedules on which this should be reported and the total amount to be reported. If any item is not reportable for tax purposes, write "Nil and explain the reason why. a. Group sickness or accident insurance plan benefit b. WCB benefit c. Inheritance a Remuneration from employer (salaries, wages, taxable benefits, etc.) 2019 H&R Block Canada, Inc. Fundamentals of Income Tax - Case Study 2019 9 e. Strike pay f. Retiring allowance g. Scholarship h. Capital gain from sale of the house i. Odd jobs 2019 H&R Block Canada, Inc. Fundamentals of Income Tax - Case Study 2019 11 b. Moving expenses C. Spousal RRSP contribution d. Retiring allowance transfer to RRSP e. Charitable donation f. Disability supports 2019 H&R Block Canada, Ine. 12 Fundamentals of Income Tax - Case Study 2019 4. g. Home accessibility expenses h. Medical expenses i. Home buyers' amount j. Union dues Fundamentals of Income Tax - Case Study 2019 13 For each of the following boxes on Jeremy's T4 slip, please answer: 5. For each What does this box represent? On which line will it go on the tax return? If it is not to be entered on the tax return, please state the reason why. a. Box 38: b. Box 39: c. Box 66: d. Box 67: 6. Calculate Derrick's total federal tuition amount. How much will he use on his return? What form or schedule does he have to complete? What can he do with his unused amount, if any? Explain your answer. 7. Assume Jeremy will claim the children on his taxi my will claim the children on his tax return. What is the maximum amount Jeremy can claim for each of the following? a Canada caregiver amount for children under 18 years of age h Disability amount transferred from a dependant (not a spousal transfer) 2019 H&R Block Canada, Inc. Fundamentals of Income Tax - Case Study 2019 5 Statement of RRSP Income Etat du revenu provenant d'un REER T4RSP 1 Canada wenu Ance du revenu YE 2018 10 A 10 0 HS22 25 2,000.00 PREP 2TH SGS 200.00 RAP ape 30 24 C 805020021 F Now Anderson Jeremy 805020351 Videos www . 522 Orangewood Drive Your City, YP, XOX OXO Financial Trust co Tyc ker Protected B when completed / Protg une fois rempli T4RSP (17) 1. Canada wenue Agence du revenu T4 Card Statement of Remuneration Paid ABC Inc. 2018 tat de la rmunration paye Employment incong ke 101 income tax deducted - 437 Powonus comploi-lyre 101 impe r - 37 14 18,333.40 22 2,540.20 54 L E I Nume compte pour Promos gerent m et CPP round-ne 308 Province dengtos Cosat ons deep APC - S08 1 16 734,25 24 18,333.40 sowie unter Ecump-Empion CPPOPP pertens Calisation de RR 12 805 020 021 -1 urant de pension 26 18,333.40 E P ISTUTIS in 12 Employee's name and address - Nom et adresse de l'employe sier TAE- 2 304.28 L OWO Anderson Sonja Rpp contribution - 207 Cotone HPA - 207 son gne 349 aunted ce Co s tine 12 aces ne Protected B when completed / Protg B une fois rempli AFP or DP Program PAN 522 Orangewood Drive Your City, YP, XOX OXO 52 55 14(14) Fundamentals of Income Tax - Case Study 2019 I Canada Revenue Agency Agence du revenu Pwose-Nou peut Your City University Arne 2018 T4A Statement of Pension Retirement Annuity and Other Income Ett du revenu de pension de retraite de rente ou d'autres sources e 115 Tandidate-ne 47 Pension m Promo pontons - 115 Payers trumbei meu payu So o number Numune 302 Ropa con me Numero de compte d Lumpsummerising 130 Pama -lo 130 Belloyed Comm u nandipendent 013 810 020 560 Fotos som Hon Annun Red Recipient's name and address - Nom et adresse du bnonclaira - Nome Prane Anderson Derrick Other information (see over) Autres renseignements (vor au vrs) Amount-on Anunt Moment 522 Orangewood Drive Your City, YP, XOX OXO 105 6,235.00 T4A (15Protected when completed Prot a une fois rompi Arion Box-coce Amount Montani Anni Moront Amount-Montan Box- T enda Revenue Protected B when completed For student 1 Acance du revenu du Canada Tuition and Enrolment Certificate lose this certificate to student who was enrolled during the calendar year in a qualifying educational program or a specified educational program at a post-secandan institution, such as college or university, or at an initution certifad by Employment and Social Development Canada (ESDC). Tuinfees paid in respect of the calendar year to any one institution have to be more than $100, Fees paid to an institution certified by ESDC or to post-secondar educational initution in Canada for courses that are not at a post-secondary school lever have 10 be for courses taken to get or improve skills in an occupation, and the student has to be 10 years of age or older before the end of the year. . Students calculate their provincial or territorial education amounts (if applicable) based on the number of months indicated in Box or below Name of program or course Bachelor of Arts Name and address of student Derrick Anderson Student number 810 020 560 Session periochi, part-time and full-time Elgible tuition fees Number of months for part time and From To ultime sessions YM Part-time Full-time 2018 09 2018 12 $ 3,200.00 522 Orangewood Drive Your City, YP, XOX OXO Totals $ 3,200.00 Name and address of educational instution Your City University or part of your tuition mount, complete the back of sin Information for students to the back of sip 1. If you want to transfer URA E (18) T 2 Fundamentals of Income Tax - Case Study 2019 Case Study Read the information below and then answer the questions which follow Sonja (horn on December 2, 1971) is married to Jeremy Anderson (born on April 5. Thy are the parents of three childr n: Derrick - born on July 9,41999; Wayne - born on January 15, 2004; and Ghete egunable to wollvand 1808 a wheelchair. She has Form T2201 on file with CRA and Jeremy has claimed the disability transfer for Chelsea in previous years. In 2013, Sonja had suffered an injury that caused her to go blind. She has Form T2201 on file with CRA. For the first part of 2018, she received $8,500 in income from a group sickness or accident insurance plan, which was an employee-pay-all plan that only she contributed to. She never received a slip for this benefit. She received Worker's Compensation Benefits (WCB) of $7,800. reported on a T5007 slip. In April, Sonja inherited $23,000 from her late great-aunt. She set $15,000 aside with other savings to use as a down payment on a new home later in the year and put $1,000 each into savings accounts for her three children. Each of the children earned $25 of interest from these savings accounts. The bank did not issue information slips for the interest paid. Sonja contributed the remaining $5,000 of inheritance to a spouse or common-law partner RRSP. Sonja's RRSP limit is $4,000, and Jeremy's is $23,000. Jeremy worked for Grant Manufacturing in Old City. In February, Jeremy's union called a strike; during that time, he received $1,200 in strike pay. Jeremy has a receipt for $450 paid in union dues last year. May was Jeremy's last month with Grant Manufacturing. He has a receipt for $6,000 from the portion of the retiring allowance that he contributed into his RRSP. In June, Jeremy took out $2,000 from the RRSP Sonja had contributed for him in April. On August 1, he started a new job at AA Consulting Inc in Your City, For the last 10 years, the family has resided in a house they owned at 789 King Street, Old City, YP, for which they paid $1,425 in property taxes for the first part of the year. On July 1st, they moved to their new home at 522 Orangewood Drive, Your City, which is 120 km away from their old home (assume a per km rate of $0.50), The family did not stop for any Is when travelling and did not live in any temporary lodging. They paid Gentle Moves for the transportation of their household and $100 for boxes and other moving supplies. The old house, wh $400,000. They paid to purchase the home the last 6 months of they house, which they originally bought for $300,000 in Old City, was sold in July for VU. They paid $1.300 in legal fees related to the sale and a $20,000 commission to the ate agent. They bought their new home for $450,000 and paid $1,750 for legal fees case the home and $300 for transfer of the title. Property taxes on the new home for 5 months of the year amounted to $1,800. 2019 H&R Block Canada, Inc. Their new home in Your City is 8 km from AA Consulting Inc and 12 km from ABC Inc. The old home was 122 km from AA Consulting Inc and 115 km from ABC Inc. Neither employer paid them anything to move to Your City. Before moving into the new home, the family had spent $15,000 from the mortgage to renovate the house in order to make it accessible for Chelsea's wheelchair. These renovations did not increase the value of the house and they would not typically have been incurred by persons who do not have severe and prolonged mobility impairment. Sonja went back to work in September but in order to do so she required specialized job coaching; she also needed to purchase equipment and software to allow her to read print. During the first month she worked at ABC Inc., she paid for attendant care to help her get acclimatized to the job. She has a note from a doctor certifying that the special services were necessary in order to work and she has a prescription for the software and equipment. Altogether, these expenses came to $6,100 and Sonja has decided to claim them as disability supports and not medical expenses. In the fall, Jeremy and Sonja asked her mother, Shauna Davis, to come over on nights when both of them worked and keep an eye on the kids. Over that time, they paid her a token amount of $800 for this service. Shauna gave them two $400 receipts (one for Chelsea and one for Wayne) that included her Social Insurance Number. Shauna was the only child care provider they had last year. During the first part of the year, Derrick worked at the local mall and has a T4 from the Dollar Store. In the fall, Derrick attended university. He has a T2202A slip showing 4 months of full- time enrolment and tuition fees of $3,200. Derrick received a scholarship of $6,235 from the local university. Wayne earned $2,000 doing odd jobs during the summer. Last year, Sonja paid $1,500 to an orthodontist to fix Wayne's teeth. Sonja has been supporting the Salvation Army for many years. Last year she donated $350. All information slips are reproduced on the following pages. Based on the information provided here and on the T-slips, answer the questions on the pages that follow the information slips. 2019 H&R Block Canada, Inc. 4 Fundamentals of Income Tax - Case Study 2019 T4 I Canada Avenue Agence du revenu du Canada Year Agency 2018 Statement of Remuneration Paid tat de la rmunration paye Grant Manufacturing Employment omne 101 Revenus om n e 101 mot sur l e 23,076.92 22 11,805,30 Elite ont nos PC - Igneo 54 post o com coram Profployment Emel CPP s Pravne Coon cam 16 10 YP 969.06 24 23,076.92 Exempt - Exemption CEPORO FPP Em tempo's OPP c P R O Ine 308 ontine 308 Copper Gainstrepen 805 020 351 29 726 1 23,076.92 RPCARO AE PAP 2 Employees El pres ine 312 Cotisations de l'employe & TAE- 312 Union Cotton s e 212 Employee's name and address - Nom et adresse de l'employ ta 383.08 44 450.00 CAMERA Anderson Jeremy RPP tribution in 207 Consbont a un RPA -he 207 Charte dintornine 29 Constance 343 Protected B when completed / Protg B une fois rempli 20 1,020.00 Pensionament 208 Facteur de ce lone 208 N REPO-OP SP registration number aiment un REA ou dun POE 522 Orangewood Drive Your City, YP, XOX OXO 2,085,00 45986522 Employee's PPIP Cams - Over Cortions de remploy ou RPAP-You rse G popisurable ang as Surables du RPAP Anunt Murton Amort-Mor Amount-MO Cther information 38 3,400.00 1,700.00 40 150,00 Aur Mortant Amourt-Montant renseignement T4 (14) Aroun - Montre 8,000.00 66 Virtuve 12,000.00 En yerin e mpyur AA Consulting Inc. Anne Canada Revenue Apnoe duu Agro T4 Year 2018 Statement of Remuneration Paid Etat de la rmunration paye El m e-ne 101 vous emploigne 101 om te deducted in 43T importerelamu 437 32,621,00 22 6 ,417,90 Pref erent Empty CPP -tre 509 Prowne dolor de onl beros ine Gains assures de 10 YP 181.441.4924 32,621.00 805 020 351 Prehe 30 de POPPER 29 RACNO A RPAP 26 32,621.00 Employee's name and address - Nom et adresse de l'employ Cu r ry TA-1 112 18 Co Anderson 541,51 Jeremy Protected B when completed / Protg B une fois rempli connections in 207 Crometedor es 900,00 522 Orangewood Drive Your City, YP, XOX Oxo o gna 2018 PSP 1,800,00 P-A52 16 FFP T4 (14) 2019 H&R Block Canada, Ine. 8 Fundamentals of Income Tax - Case Study 2019 1. For each of the following income types and for each family member (if appli ember (if applicable): Itemize all amounts of this type (indicate who received it and how much) Determine how much of this income, if any, is required to be reported on a return. For each taxpayer, state the line(s) on the tax return or forms/schedules on which this should be reported and the total amount to be reported. If any item is not reportable for tax purposes, write "Nil and explain the reason why. a. Group sickness or accident insurance plan benefit b. WCB benefit c. Inheritance a Remuneration from employer (salaries, wages, taxable benefits, etc.) 2019 H&R Block Canada, Inc. Fundamentals of Income Tax - Case Study 2019 9 e. Strike pay f. Retiring allowance g. Scholarship h. Capital gain from sale of the house i. Odd jobs 2019 H&R Block Canada, Inc. Fundamentals of Income Tax - Case Study 2019 11 b. Moving expenses C. Spousal RRSP contribution d. Retiring allowance transfer to RRSP e. Charitable donation f. Disability supports 2019 H&R Block Canada, Ine. 12 Fundamentals of Income Tax - Case Study 2019 4. g. Home accessibility expenses h. Medical expenses i. Home buyers' amount j. Union dues Fundamentals of Income Tax - Case Study 2019 13 For each of the following boxes on Jeremy's T4 slip, please answer: 5. For each What does this box represent? On which line will it go on the tax return? If it is not to be entered on the tax return, please state the reason why. a. Box 38: b. Box 39: c. Box 66: d. Box 67: 6. Calculate Derrick's total federal tuition amount. How much will he use on his return? What form or schedule does he have to complete? What can he do with his unused amount, if any? Explain your answer. 7. Assume Jeremy will claim the children on his taxi my will claim the children on his tax return. What is the maximum amount Jeremy can claim for each of the following? a Canada caregiver amount for children under 18 years of age h Disability amount transferred from a dependant (not a spousal transfer) 2019 H&R Block Canada, Inc. Fundamentals of Income Tax - Case Study 2019 5 Statement of RRSP Income Etat du revenu provenant d'un REER T4RSP 1 Canada wenu Ance du revenu YE 2018 10 A 10 0 HS22 25 2,000.00 PREP 2TH SGS 200.00 RAP ape 30 24 C 805020021 F Now Anderson Jeremy 805020351 Videos www . 522 Orangewood Drive Your City, YP, XOX OXO Financial Trust co Tyc ker Protected B when completed / Protg une fois rempli T4RSP (17) 1. Canada wenue Agence du revenu T4 Card Statement of Remuneration Paid ABC Inc. 2018 tat de la rmunration paye Employment incong ke 101 income tax deducted - 437 Powonus comploi-lyre 101 impe r - 37 14 18,333.40 22 2,540.20 54 L E I Nume compte pour Promos gerent m et CPP round-ne 308 Province dengtos Cosat ons deep APC - S08 1 16 734,25 24 18,333.40 sowie unter Ecump-Empion CPPOPP pertens Calisation de RR 12 805 020 021 -1 urant de pension 26 18,333.40 E P ISTUTIS in 12 Employee's name and address - Nom et adresse de l'employe sier TAE- 2 304.28 L OWO Anderson Sonja Rpp contribution - 207 Cotone HPA - 207 son gne 349 aunted ce Co s tine 12 aces ne Protected B when completed / Protg B une fois rempli AFP or DP Program PAN 522 Orangewood Drive Your City, YP, XOX OXO 52 55 14(14) Fundamentals of Income Tax - Case Study 2019 I Canada Revenue Agency Agence du revenu Pwose-Nou peut Your City University Arne 2018 T4A Statement of Pension Retirement Annuity and Other Income Ett du revenu de pension de retraite de rente ou d'autres sources e 115 Tandidate-ne 47 Pension m Promo pontons - 115 Payers trumbei meu payu So o number Numune 302 Ropa con me Numero de compte d Lumpsummerising 130 Pama -lo 130 Belloyed Comm u nandipendent 013 810 020 560 Fotos som Hon Annun Red Recipient's name and address - Nom et adresse du bnonclaira - Nome Prane Anderson Derrick Other information (see over) Autres renseignements (vor au vrs) Amount-on Anunt Moment 522 Orangewood Drive Your City, YP, XOX OXO 105 6,235.00 T4A (15Protected when completed Prot a une fois rompi Arion Box-coce Amount Montani Anni Moront Amount-Montan Box- T enda Revenue Protected B when completed For student 1 Acance du revenu du Canada Tuition and Enrolment Certificate lose this certificate to student who was enrolled during the calendar year in a qualifying educational program or a specified educational program at a post-secandan institution, such as college or university, or at an initution certifad by Employment and Social Development Canada (ESDC). Tuinfees paid in respect of the calendar year to any one institution have to be more than $100, Fees paid to an institution certified by ESDC or to post-secondar educational initution in Canada for courses that are not at a post-secondary school lever have 10 be for courses taken to get or improve skills in an occupation, and the student has to be 10 years of age or older before the end of the year. . Students calculate their provincial or territorial education amounts (if applicable) based on the number of months indicated in Box or below Name of program or course Bachelor of Arts Name and address of student Derrick Anderson Student number 810 020 560 Session periochi, part-time and full-time Elgible tuition fees Number of months for part time and From To ultime sessions YM Part-time Full-time 2018 09 2018 12 $ 3,200.00 522 Orangewood Drive Your City, YP, XOX OXO Totals $ 3,200.00 Name and address of educational instution Your City University or part of your tuition mount, complete the back of sin Information for students to the back of sip 1. If you want to transfer URA E (18) T 2 Fundamentals of Income Tax - Case Study 2019 Case Study Read the information below and then answer the questions which follow Sonja (horn on December 2, 1971) is married to Jeremy Anderson (born on April 5. Thy are the parents of three childr n: Derrick - born on July 9,41999; Wayne - born on January 15, 2004; and Ghete egunable to wollvand 1808 a wheelchair. She has Form T2201 on file with CRA and Jeremy has claimed the disability transfer for Chelsea in previous years. In 2013, Sonja had suffered an injury that caused her to go blind. She has Form T2201 on file with CRA. For the first part of 2018, she received $8,500 in income from a group sickness or accident insurance plan, which was an employee-pay-all plan that only she contributed to. She never received a slip for this benefit. She received Worker's Compensation Benefits (WCB) of $7,800. reported on a T5007 slip. In April, Sonja inherited $23,000 from her late great-aunt. She set $15,000 aside with other savings to use as a down payment on a new home later in the year and put $1,000 each into savings accounts for her three children. Each of the children earned $25 of interest from these savings accounts. The bank did not issue information slips for the interest paid. Sonja contributed the remaining $5,000 of inheritance to a spouse or common-law partner RRSP. Sonja's RRSP limit is $4,000, and Jeremy's is $23,000. Jeremy worked for Grant Manufacturing in Old City. In February, Jeremy's union called a strike; during that time, he received $1,200 in strike pay. Jeremy has a receipt for $450 paid in union dues last year. May was Jeremy's last month with Grant Manufacturing. He has a receipt for $6,000 from the portion of the retiring allowance that he contributed into his RRSP. In June, Jeremy took out $2,000 from the RRSP Sonja had contributed for him in April. On August 1, he started a new job at AA Consulting Inc in Your City, For the last 10 years, the family has resided in a house they owned at 789 King Street, Old City, YP, for which they paid $1,425 in property taxes for the first part of the year. On July 1st, they moved to their new home at 522 Orangewood Drive, Your City, which is 120 km away from their old home (assume a per km rate of $0.50), The family did not stop for any Is when travelling and did not live in any temporary lodging. They paid Gentle Moves for the transportation of their household and $100 for boxes and other moving supplies. The old house, wh $400,000. They paid to purchase the home the last 6 months of they house, which they originally bought for $300,000 in Old City, was sold in July for VU. They paid $1.300 in legal fees related to the sale and a $20,000 commission to the ate agent. They bought their new home for $450,000 and paid $1,750 for legal fees case the home and $300 for transfer of the title. Property taxes on the new home for 5 months of the year amounted to $1,800. 2019 H&R Block Canada, Inc. Their new home in Your City is 8 km from AA Consulting Inc and 12 km from ABC Inc. The old home was 122 km from AA Consulting Inc and 115 km from ABC Inc. Neither employer paid them anything to move to Your City. Before moving into the new home, the family had spent $15,000 from the mortgage to renovate the house in order to make it accessible for Chelsea's wheelchair. These renovations did not increase the value of the house and they would not typically have been incurred by persons who do not have severe and prolonged mobility impairment. Sonja went back to work in September but in order to do so she required specialized job coaching; she also needed to purchase equipment and software to allow her to read print. During the first month she worked at ABC Inc., she paid for attendant care to help her get acclimatized to the job. She has a note from a doctor certifying that the special services were necessary in order to work and she has a prescription for the software and equipment. Altogether, these expenses came to $6,100 and Sonja has decided to claim them as disability supports and not medical expenses. In the fall, Jeremy and Sonja asked her mother, Shauna Davis, to come over on nights when both of them worked and keep an eye on the kids. Over that time, they paid her a token amount of $800 for this service. Shauna gave them two $400 receipts (one for Chelsea and one for Wayne) that included her Social Insurance Number. Shauna was the only child care provider they had last year. During the first part of the year, Derrick worked at the local mall and has a T4 from the Dollar Store. In the fall, Derrick attended university. He has a T2202A slip showing 4 months of full- time enrolment and tuition fees of $3,200. Derrick received a scholarship of $6,235 from the local university. Wayne earned $2,000 doing odd jobs during the summer. Last year, Sonja paid $1,500 to an orthodontist to fix Wayne's teeth. Sonja has been supporting the Salvation Army for many years. Last year she donated $350. All information slips are reproduced on the following pages. Based on the information provided here and on the T-slips, answer the questions on the pages that follow the information slips. 2019 H&R Block Canada, Inc. 4 Fundamentals of Income Tax - Case Study 2019 T4 I Canada Avenue Agence du revenu du Canada Year Agency 2018 Statement of Remuneration Paid tat de la rmunration paye Grant Manufacturing Employment omne 101 Revenus om n e 101 mot sur l e 23,076.92 22 11,805,30 Elite ont nos PC - Igneo 54 post o com coram Profployment Emel CPP s Pravne Coon cam 16 10 YP 969.06 24 23,076.92 Exempt - Exemption CEPORO FPP Em tempo's OPP c P R O Ine 308 ontine 308 Copper Gainstrepen 805 020 351 29 726 1 23,076.92 RPCARO AE PAP 2 Employees El pres ine 312 Cotisations de l'employe & TAE- 312 Union Cotton s e 212 Employee's name and address - Nom et adresse de l'employ ta 383.08 44 450.00 CAMERA Anderson Jeremy RPP tribution in 207 Consbont a un RPA -he 207 Charte dintornine 29 Constance 343 Protected B when completed / Protg B une fois rempli 20 1,020.00 Pensionament 208 Facteur de ce lone 208 N REPO-OP SP registration number aiment un REA ou dun POE 522 Orangewood Drive Your City, YP, XOX OXO 2,085,00 45986522 Employee's PPIP Cams - Over Cortions de remploy ou RPAP-You rse G popisurable ang as Surables du RPAP Anunt Murton Amort-Mor Amount-MO Cther information 38 3,400.00 1,700.00 40 150,00 Aur Mortant Amourt-Montant renseignement T4 (14) Aroun - Montre 8,000.00 66 Virtuve 12,000.00 En yerin e mpyur AA Consulting Inc. Anne Canada Revenue Apnoe duu Agro T4 Year 2018 Statement of Remuneration Paid Etat de la rmunration paye El m e-ne 101 vous emploigne 101 om te deducted in 43T importerelamu 437 32,621,00 22 6 ,417,90 Pref erent Empty CPP -tre 509 Prowne dolor de onl beros ine Gains assures de 10 YP 181.441.4924 32,621.00 805 020 351 Prehe 30 de POPPER 29 RACNO A RPAP 26 32,621.00 Employee's name and address - Nom et adresse de l'employ Cu r ry TA-1 112 18 Co Anderson 541,51 Jeremy Protected B when completed / Protg B une fois rempli connections in 207 Crometedor es 900,00 522 Orangewood Drive Your City, YP, XOX Oxo o gna 2018 PSP 1,800,00 P-A52 16 FFP T4 (14) 2019 H&R Block Canada, Ine

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