ll be on June 30, 2022. 4) Harjot received a $1,000 non-eligible dividend in 2021. 5) Harjot's spouse works full-time and earns $68,000 a year. 6) Harjot had extensive dental work done in 2021. The total cost was $7,500 and Harj
Harjot earned $85,000 in 2021 as a full-time teacher.
The following information pertaining to Harjot's 2021 tax return has also been provided to you: 1) Net capital losses from 2020 totaled $10,000, and non-capital losses from 2020 totaled $2,000, and neither could be carried back to previous years. 2) Harjot had the following amounts deducted from his pay during the year: CPP and EI of $4,056 (which includes the CPP Enhanced Contribution of $290) and income tax of $19,000. 3) Harjot contributed $5,000 to a TFSA and $15,000 to a guaranteed investment certificate (GIC) which pays 4% annual interest. The first interest receipt for the GIC will be on June 30, 2022. 4) Harjot received a $1,000 non-eligible dividend in 2021. 5) Harjot's spouse works full-time and earns $68,000 a year. 6) Harjot had extensive dental work done in 2021. The total cost was $7,500 and Harjot did not receive any reimbursement for the cost.
7) Harjot had $3,250 of deductible employment expenses as per the employer provided T2200.
A. Calculate Harjot's net income for tax purposes for 2021 in accordance with Section 3 of the Income Tax Act.
B. Calculate Harjot's taxable income for 2021.
C. Calculate Harjot's minimum federal tax liability for 2021. (
D. Identify carry over item(s) and related amount(s).
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