Exam 4: Tools for Financial Planning - Using Tax Concepts for Planning

Tax avoidance may be subject to both criminal and civil prosecution.

If you are supporting a spouse who attended school and had $3000 income

Comment on receiving a large tax refund.Is it a good use of your funds considering present value concepts? Does the government pay you interest? What can you do to change your withholding or recalculate it? If you received a large refund,what would you use it for?

Interest expense paid on home loans and car loans is deductible from your income tax.

Filing an income tax return,even when you have no tax to pay,may increase the amount of RRSP contributions you are allowed in later years.

Jessie is 65 and has taxable income of $66 000.She would have her age amount credit fully clawed back.

You are being paid on a base pay,commission,and bonus incentive compensation package.The economy can have a lot to do with how much you earn in a year as well as your personal efforts to improve sales and increase your customer base.Your employer is very flexible as to when and how it makes incentive payments to you.For instance,it can have a profit sharing plan which involves stock options and is flexible on when it will distribute profits and bonuses. Recent forecasts indicate that the economy will slow down next year and you have a sizable commission cheque and bonus payments owed to you this year.Under these circumstances,what would be your tax planning tactics to reduce taxes?

If Jack has total RPP and RRSP contributions of $9000,he can deduct that amount from his total income to calculate his taxable income.

By what date must self-employed individuals file their income tax returns?

Which of the following items is affected by the taxpayer's income level?

Which of the following income is taxable income?

If Helen earns $105 000 taxable income in 2014,how much federal income tax does she have to pay according to the brackets and rates in the textbook.What is Helen's average tax rate for federal tax? Show your calculations.What is Helen's average tax rate using the combined rates in the textbook for your province? Show your calculations.

Tax credits are used to reduce tax

The T4 slip provided by your employer shows all your

If you are a married taxpayer supporting a spouse whose has less than $10 000 income,

Even if you have no tax to pay,it is beneficial to file a tax return because

Which of the following is not a feature of a registered education savings plan (RESP)?

Students should not file income tax returns if their income is below the basic personal amount.

The Spousal/common law tax credit is available to those supporting a spouse who had earnings under $11 138 in 2014.

Michelle is an independent cleaning contractor but her customers provide the necessary cleaning supplies and equipment.Michelle may not be qualified as a self-employed individual.