(Preferably you use the CRA forms to answer the question. CRA web site:https://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html). Calculate theFederal tax payable for the year 2010 for Mrs. Smith, given the following information:
Employment income: $108,000
Actual dividends: $8,000 (these are "other than eligible" dividends)
Employee CPP contribution: $ 910
EI premium: $720
Registered Pension Plan Contribution: $7,400
Union dues: $600
RRSP contribution: $8,300
Prize from winning the lottery: $14,400
Life Insurance benefit payment received: $42,000
Interest income: $21,000
Tuition fees: $4,320 (was in school full time from January to April during the year)
Charitable donations: $4,890
Federal income tax deducted: $31,900
(Assume no more CPP contribution is required.)
Go to the CRA web site: https://www.cra-arc.gc.ca/formspubs/t1gnrl/menu-eng.html to find the Tax Guide, forms, personal tax brackets and marginal tax rates for 2010.