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Gerry is a resident of Quebec and has been with the same employer, XYZ company for the last 3 years. Facts: Gerry’s gross salary in 2022:$96,000 ignore non-refundable tax credits for this problem Using Table A, 2022 tax rates, calculate Gerry’s taxes

Gerry is a resident of Quebec and has been with the same employer, XYZ company for the last 3 years. Facts: Gerry’s gross salary in 2022:$96,000 ignore non-refundable tax credits for this problem Using Table A, 2022 tax rates, calculate Gerry’s taxes

SWFT Individual Income Taxes
SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 6DQ
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Gerry is a resident of Quebec and has been with the same employer, XYZ company for the last 3 years.

Facts:

  • Gerry’s gross salary in 2022:$96,000
  • ignore non-refundable tax credits for this problem
  1. Using Table A, 2022 tax rates, calculate Gerry’s taxes payable

Gerry’s Taxes Payable

  1. Calculate Gerry’s average tax rate and marginal tax rate:

 

Tax calculation

Average tax rate

                                                                

Marginal tax rate

 

Table A 

2021 Taxable Income Combined Federal & Quebec Tax Brackets and Tax Rates QC 2021 Marginal Tax Rates Canadian Dividends Other Capital Income Gains Eligible Non-Eligible 27.53% 13.76% 18.37% first $46,295 32.53 % 16.26 % 11.43% 37.12% 18.56% 17.77% 24.12% over $46,295 up to $50,197 29.40% over $50,197 up to $92,580 34.00% over $92,580 up to $100,392 39.28% over $100,392 up to $112,655 41.30% over $112.655 up to $155,625 45.71% 22.86 % 29.62% 47.46 % 23.73 % 32.04% 50.23% 25.12% 35.86% 53.31% 26.65% 40.10% 44.48% over $155,625 up to $221,708 48.02% over $221,708 Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount) Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-aligible dividends is 15% For more information see Quebec dividend tax credits. first $45,105 over $45,105 up to $49,020 over $49,020 up to $90,200 over $90,200 up to $98,040 over $98,040 up to $109,755 over $109,755 up to $151,978 over $151,978 up to $216,511 over $216,511 41.12% 20.56% 23.29% QC 2022 Marginal Tax Rates 2022 Taxable Income Canadian Dividends Eligible Non-Eligible 27.53% 13.76% 4.53% 32.53% 16.26 % 11.43% Other Capital Income Gains 37.12% 18.56% 17.77% 41.12% 20.56% 23.29% 45.71% 22.86% 29.62% 47.46% 23.73 % 32.04% 50.28% 25.14% 35.93% 53.31% 26.65% 40.10% 19.05% 24.80% 30.08% 34.68% 39.96% 41.97% 45.22% 48.70%
Transcribed Image Text:2021 Taxable Income Combined Federal & Quebec Tax Brackets and Tax Rates QC 2021 Marginal Tax Rates Canadian Dividends Other Capital Income Gains Eligible Non-Eligible 27.53% 13.76% 18.37% first $46,295 32.53 % 16.26 % 11.43% 37.12% 18.56% 17.77% 24.12% over $46,295 up to $50,197 29.40% over $50,197 up to $92,580 34.00% over $92,580 up to $100,392 39.28% over $100,392 up to $112,655 41.30% over $112.655 up to $155,625 45.71% 22.86 % 29.62% 47.46 % 23.73 % 32.04% 50.23% 25.12% 35.86% 53.31% 26.65% 40.10% 44.48% over $155,625 up to $221,708 48.02% over $221,708 Marginal tax rate for dividends is a % of actual dividends received (not grossed-up taxable amount) Marginal tax rate for capital gains is a % of total capital gains (not taxable capital gains). Gross-up rate for eligible dividends is 38%, and for non-aligible dividends is 15% For more information see Quebec dividend tax credits. first $45,105 over $45,105 up to $49,020 over $49,020 up to $90,200 over $90,200 up to $98,040 over $98,040 up to $109,755 over $109,755 up to $151,978 over $151,978 up to $216,511 over $216,511 41.12% 20.56% 23.29% QC 2022 Marginal Tax Rates 2022 Taxable Income Canadian Dividends Eligible Non-Eligible 27.53% 13.76% 4.53% 32.53% 16.26 % 11.43% Other Capital Income Gains 37.12% 18.56% 17.77% 41.12% 20.56% 23.29% 45.71% 22.86% 29.62% 47.46% 23.73 % 32.04% 50.28% 25.14% 35.93% 53.31% 26.65% 40.10% 19.05% 24.80% 30.08% 34.68% 39.96% 41.97% 45.22% 48.70%
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