Willa was 40 years old. The followinf three independent cases made varying assumptions for the 2016 taxation year with respect to to Willa maritual status and number of dependents. In all cases, Willa earned employment income of $60,000 and her employer withheld the required EI premium and CPP contributions.
Case A: Willa was married and her husband, Dave, had $8,800 net income for tax purposes in 2016. Willa's 75 year old mother, Betty lived with them. Betty has $16,000 net income for tax purposes in 2016.
Case B: Willa was not married and had no dependents. In 2016, she donated $50,000 to her local hospital. She chose to claim $15,000 donations in 2016. Since she had made previous charitable donations, she was not eligible for the first time donor's super credit. In 2016, she also donated $2,000 to a federal political party.
Case C: Willa was a single mother. She had a son, Martin, who was 10 years old and who lived with her. Martin had no income in 2016. Willa graduated from a Canadian university several years ago and had a Canada Student Loan outstanding. Willa paid $500 in interest in 2016 on this loan.
Required:
For each of the preceding Cases, determine the maximum amount of 2016 personal tax credits, including transfers from a spouse or dependent, that can be applied against federal Tax Payable by Willa and calculate the federal tax payable.