Question 1

Basic personal amount and spousal/common-law partner amount in non-refundable tax credit are the same.

Accepted Answer

A) True 
 B)False

Question 2

Taxpayers can have more than the minimum amount of required income tax withheld from each paycheque.

Accepted Answer

A) True 
 B)False

Question 3

There is a clawback of social assistance payments on income above a certain level.

Accepted Answer

A) True 
 B)False

Question 4

When taxable income on a progressive basis exceeds certain levels

Accepted Answer

A) a higher rate of tax is charged on all levels. 
B) tax credits become more important. 
C) deductions reach a maximum allowable amount. 
D) the tax rate is increased until a new income level is exceeded. 
A) a higher rate of tax is charged on all levels. 
B) tax credits become more important. 
C) deductions reach a maximum allowable amount. 
D) the tax rate is increased until a new income level is exceeded.

Question 5

Your gross wages are subject to Canada Revenue Agency taxes that fund the social assistance benefits and health care programs.

Accepted Answer

A) True 
 B)False

Question 6

Taxable benefits from employment include the following except

Accepted Answer

A) use of a company automobile. 
B) employer-paid life insurance. 
C) use of company housing facilities. 
D) your RRSP contributions. 
A) use of a company automobile. 
B) employer-paid life insurance. 
C) use of company housing facilities. 
D) your RRSP contributions.

Question 7

Which of the following is true for post secondary students?

Accepted Answer

A) Income from the RESP their parents set up for them is tax free if used for education 
B) Scholarship income awarded to a student and used for their education is tax free 
C) Bursary income is tax free if the education amount is applied for 
D) All these income sources are tax free to students 
A) Income from the RESP their parents set up for them is tax free if used for education 
B) Scholarship income awarded to a student and used for their education is tax free 
C) Bursary income is tax free if the education amount is applied for 
D) All these income sources are tax free to students

Question 8

Jake invested $800 in an RRSP. If he has a 15 percent marginal tax rate and the contribution is tax deductible, Jake will

Accepted Answer

A) pay $120 more in taxes. 
B) pay $120 less in taxes. 
C) receive an $800 tax credit. 
D) have $800 more in taxable income. 
A) pay $120 more in taxes. 
B) pay $120 less in taxes. 
C) receive an $800 tax credit. 
D) have $800 more in taxable income.

Question 9

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

Accepted Answer

A) Certain amounts received from an RESP account will be tax-free. 
B) An RESP contributor receives a tax deduction for the contributions. 
C) The first $2500 of annual RESP contributions will be matched by a 20 percent Canada Education Savings Grant from the government. 
D) An RESP is intended to be used to save your children's future post-secondary education tuitions. 
A) Certain amounts received from an RESP account will be tax-free. 
B) An RESP contributor receives a tax deduction for the contributions. 
C) The first $2500 of annual RESP contributions will be matched by a 20 percent Canada Education Savings Grant from the government. 
D) An RESP is intended to be used to save your children's future post-secondary education tuitions.

Question 10

The T4 slip provided by your employer shows all earnings but not the deductions made for the year.

Accepted Answer

A) True 
 B)False

Question 11

The higher the taxable income, the higher the federal tax and the lower the provincial tax you will pay.

Accepted Answer

A) True 
 B)False

Question 12

The T4 slip provided by your employer shows all your

Accepted Answer

A) income earned and tax deducted for the year. 
B) income, union dues, and taxes for the year. 
C) income earned and RPP deductions for the year. 
D) income and deductions made by that employer for the year. 
A) income earned and tax deducted for the year. 
B) income, union dues, and taxes for the year. 
C) income earned and RPP deductions for the year. 
D) income and deductions made by that employer for the year.

Question 13

A standard amount that taxpayers can claim for themselves is called

Accepted Answer

A) the personal tax credit. 
B) the personal deduction. 
C) the basic personal amount. 
D) an exclusion credit. 
A) the personal tax credit. 
B) the personal deduction. 
C) the basic personal amount. 
D) an exclusion credit.

Question 14

The Federal Government's use of net income versus taxable income ensures

Accepted Answer

A) married people benefit more. 
B) lower income individuals benefit the most. 
C) single parents benefit more. 
D) all taxpayers are treated equitably. 
A) married people benefit more. 
B) lower income individuals benefit the most. 
C) single parents benefit more. 
D) all taxpayers are treated equitably.

Question 15

From your studies of taxation in this text you have probably determined that taxation can be damaging to your financial future. One of the other things you might have picked up on is that divorce as well as taxes can ruin a financial plan. One of the benefits of a successful financial plan is that it will provide the family with financial stability. Financial instability can lead to stress between spouses, ending in divorce. Comment on how the Income Tax Act can make financial planning a difficult process. Comment on how Canadian tax law may be positive or negative in terms of how it treats divorced couples.

Accepted Answer

Child care expenses will rise and may no

Question 16

List your total income, deductions, taxable income, number of deductions, and tax credits to arrive at taxable income and taxes payable. Make up an example if you don't want to supply your own figures. Justify the number of exemptions.

Accepted Answer

Total income less deductions gives taxab

Question 17

Which taxpayer among the following can deduct his or her medical expenses?

Accepted Answer

A) Jane, who has an income of $40 000 and medical expenses of $1100 
B) Claude, who has an income of $80 000 and medical expenses of $1750 
C) Peter, who has an income of $65 000 and medical expenses of $2275 
D) Paula, who has an income of $26 000 and medical expenses of $700 
A) Jane, who has an income of $40 000 and medical expenses of $1100 
B) Claude, who has an income of $80 000 and medical expenses of $1750 
C) Peter, who has an income of $65 000 and medical expenses of $2275 
D) Paula, who has an income of $26 000 and medical expenses of $700

Question 18

Excise taxes are different than income taxes because they are applied to tobacco and alcohol purchases.

Accepted Answer

A) True 
 B)False

Question 19

Union dues and spousal support payments can be deducted in the calculation of taxable income.

Accepted Answer

A) True 
 B)False

Question 20

Which would reduce taxes the most for a high income earner (income over $100,000)?

Accepted Answer

A) Deduct $2400 interest on your investment loan 
B) Make a $4800 RRSP contribution 
C) Claim $4800 in medical expenses 
D) Claim $4800 for your spouses education amount 
A) Deduct $2400 interest on your investment loan 
B) Make a $4800 RRSP contribution 
C) Claim $4800 in medical expenses 
D) Claim $4800 for your spouses education amount

Basic personal amount and spousal/common-law partner amount in non-refundable tax credit are the same.

Taxpayers can have more than the minimum amount of required income tax withheld from each paycheque.

There is a clawback of social assistance payments on income above a certain level.

When taxable income on a progressive basis exceeds certain levels

Your gross wages are subject to Canada Revenue Agency taxes that fund the social assistance benefits and health care programs.

Taxable benefits from employment include the following except

Which of the following is true for post secondary students?

Jake invested $800 in an RRSP. If he has a 15 percent marginal tax rate and the contribution is tax deductible, Jake will

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

The T4 slip provided by your employer shows all earnings but not the deductions made for the year.

The higher the taxable income, the higher the federal tax and the lower the provincial tax you will pay.

The T4 slip provided by your employer shows all your

A standard amount that taxpayers can claim for themselves is called

The Federal Government's use of net income versus taxable income ensures

List your total income, deductions, taxable income, number of deductions, and tax credits to arrive at taxable income and taxes payable. Make up an example if you don't want to supply your own figures. Justify the number of exemptions.

Which taxpayer among the following can deduct his or her medical expenses?

Excise taxes are different than income taxes because they are applied to tobacco and alcohol purchases.

Union dues and spousal support payments can be deducted in the calculation of taxable income.

Which would reduce taxes the most for a high income earner (income over $100,000)?

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning With Personal Financial Statements

Banking Services and Managing Your Money

Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters

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

Basic personal amount and spousal/common-law partner amount in non-refundable tax credit are the same.

Taxpayers can have more than the minimum amount of required income tax withheld from each paycheque.

There is a clawback of social assistance payments on income above a certain level.

When taxable income on a progressive basis exceeds certain levels

Your gross wages are subject to Canada Revenue Agency taxes that fund the social assistance benefits and health care programs.

Taxable benefits from employment include the following except

Which of the following is true for post secondary students?

Jake invested $800 in an RRSP. If he has a 15 percent marginal tax rate and the contribution is tax deductible, Jake will

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

The T4 slip provided by your employer shows all earnings but not the deductions made for the year.

The higher the taxable income, the higher the federal tax and the lower the provincial tax you will pay.

The T4 slip provided by your employer shows all your

A standard amount that taxpayers can claim for themselves is called

The Federal Government's use of net income versus taxable income ensures

List your total income, deductions, taxable income, number of deductions, and tax credits to arrive at taxable income and taxes payable. Make up an example if you don't want to supply your own figures. Justify the number of exemptions.

Which taxpayer among the following can deduct his or her medical expenses?

Excise taxes are different than income taxes because they are applied to tobacco and alcohol purchases.

Union dues and spousal support payments can be deducted in the calculation of taxable income.

Which would reduce taxes the most for a high income earner (income over $100,000)?

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning With Personal Financial Statements

Banking Services and Managing Your Money

Managing Your Liquidity - Assessing, Managing, and Securing Your Credit

Personal Financing - Personal Loans

Personal Financing - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowners Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters