Mr Patel is employed by a large public corporation and for 2019 his salary was $72,000. He was a
member of the company's pension plan and his contributions were matched by his employer. He contributed $800.84 to the plan and the amount shown on his T4 slip along with an entry of $1,601.68 in box 52 representing his pension adjustment. Union dues were deducted of $800.
During 2019, his employer withheld the following amounts from his compensation:
EI Premiums $860.22
CPP Contributions $2,748.90
Income tax deducted $6,953
He also made RRSP contributions of $200 a month for the year and had enough contribution room.
Last year he had non capital losses of $1,000 that he could not use in 2018 and was carryforward to 2019.
Mr. Patel owns 1000 preferred shares of Iron works shares, a publicly- traded taxable Canadian corporation and received four dividend payments of $62 and sold his shares and received proceeds of disposition of $28 per share and his adjusted cost base for the shares were $20. Mr. Patel also received interest payments totaling $165 based on his balance in his savings account at the same bank and had carrying charges of $125.
Mr. Patel is the sole provider for the family and Mameet his wife works part time and had a net income of $8,800. They have two young children Sanjay and Mahesh aged seven and Eleven and paid medical expenses of $3,250 in 2019. He also contributed to various charities in the amount of $300 and his wife contributed $120 to local charities.
Determine Mr, Pate's total income, Net income, Taxable Income and the Net federal tax owing for refund for 2018 not including provincial taxes.
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