Diego Garcia is 32 years old.Diego earned $112,000 in 2020 while employed as a financial analyst.The combined CPP and EI deduction during 2020 totaled $3,754.Of this amount, $166 was the CPP enhanced contribution.The following information was also provided pertaining to the 2020 taxation year:
a) Diego enrolled in part-time studies at the local university, paying tuition fees of $1,500.
b) Diego donated $2,000 to a registered charity for tax purposes, and $800 to a federal political party.
c) During the year, a total of $4,500 was spent on eyeglasses, dental care, and prescriptions, and none of this amount was reimbursed.
d) Diego's spouse did not work during 2020 while attending full-time post-secondary classes which cost $8,000 in tuition.The maximum allowed amount was transferred to Diego for 2020 tax purposes.Diego's spouse had no other income during the year.
e) Diego ha a $2,000 non-capital loss from 2019.
f) The couple does not have any children.
Required:
A.Calculate Diego's taxable income for 2020.
B.Calculate Diego's federal tax liability for 2020.
Correct Answer:
Verified
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