Exam 1: Tools for Financial Planning - Using Tax Concepts for Planning

Roan is a student in Ontario who travelled to BC for his summer job.When in BC he worked in mining camps and his residence was over 40 km from his actual place of employment.He spent $2000 moving to BC and back to Ontario and earned $22 000.During the remaining eight months he went to school full time.Which of the following describes his tax situation best?

Which taxpayers among the following can deduct some of his or her medical expenses?

RRSP rules limit a taxpayer's contributions to the higher of 18 percent of total income to a maximum amount of $25 000.

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

You have to file a personal tax return by April 30 each year only if the Canada Revenue Agency sent you a request to file.

Marta received an inheritance of $20 000 and wants to allocate it towards her six-year-old son's education in the most effective manner.Which of the following considerations will have the greatest financial impact?

Which of the following would produce the largest financial benefit to a tax payer who earns $96000 and is in the forty percent marginal tax bracket and the twenty five percent average tax bracket? Assume that all items are options of equal importance.

The maximum medical expenses credit cannot exceed three percent of total income.

Your earnings in 2017 were $120 000,which is the 40 percent marginal tax bracket and 30 percent average tax bracket,in your province.How much would your taxes be reduced if you made the full RRSP contribution for this year (and had no additional RRSP room)?

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.

The combined Federal and Provincial tax rates vary a lot from province to province.

In which general category of tax should a homeowner earning over $250 000 in salary per year be expected to pay the most?

Meg makes RRSP contributions resulting in a tax rebate of $1200 each year.She is in a 30 percent tax bracket.What was the amount of her contribution?

Which of the following is true for a Registered Disability Savings Plan (RDSP)?

The T4 slip provided by your employer shows all your earnings and deductions for the year.

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

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

If you are a married taxpayer supporting a spouse who has less than $12750 in taxable income,

The Canada Eduction Savings grant is taxable to the beneficiary when paid from a Registered Education Savings Plan (RESP).

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