9It is February 2021 and Sandra is looking to maximize her RRSP contribution for a deduction on her 2020 income tax return. She has never been part of a RegisteredPension Plan. What is the maximum amount that she can contribute to her RRSP and claim on her 2020 personal income tax returns (include carry-forwardamounts)? She has provided you with the following information:-Salary in 2018 $10,000 (part-time employment to help with her tuition when she was 19).-Salary in 2019 $80,000. (full-time employment, she was 20).-Salary in 2020 $85,000. (full-time employment, she was 21).-Current salary in 2021 $90,000. (full-time employment, she is 22).-RRSP contribution made previously and deducted on her 2019 tax return for $1,300Registered Retirement Savings Plan (RRSP): Annual LimitsFormula for RRSP contribution limit: 18% of your previous year's earned income lessyour previous year's pension adjustment to an annual maximum.Annual maximum contribution limitABCYear2018201920202021$14,900$31,640$17,840D $18,000$19,140$26,230$26,500$27,230$27,830

Registrered Pension Plan -An employee of a corporation may receive pension benefits upon their…

Answered: It is February 2021 and Sandra is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Malcolm knows about the Old Age Security (OAS) pension clawback but is unsure how to calculate if for him and his wife. In 2020, the OAS pension is clawbacked or reduced by 15% above $79,054. Malcolm and his wife are both receiving monthly pensions of $613.54. His net income is $130,000 while his wife's net income is $85,000. What is the total amount they have to repay in 2020? Minimum Income Recovery Threshold Maximum Income Recovery Threshold $79,054 $8,254 $14,725 $892 $13,833 $7,362 $128,137
Joey, who is single, is not covered by another qualified plan and earns $126,000 at his job in 2020. How much can he contribute to a traditional IRA or to a Roth IRA in 2020?
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Required information [The following information applies to the questions displayed below.] In 2023, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a Ph.D. student and unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations. Note: Leave no answers blank. Enter zero if applicable. a. Susan's salary and the couple's AGI before any IRA contribution deductions is $224,000. The couple files a joint tax return. Answer is complete but not entirely correct. Maximum deductible IRA contribution $ Susan 0 $ Dan 2,400
1 Julia is turning 65 in June 1, 2022. She wants to stop paying into CPP. As she gets paid twice a month and her gross pay is $3,500 for every pay check, what is her CPP contribution for 2022? What is her CPP deductions from each pay period? How much does her employer have to remit to CRA each pay period? Please show the calculations.
In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs.What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10. (Leave no answer blank. Enter zero if applicable.) a. Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages.
[The following information applies to the questions displayed below.] In 2023, Susan (44 years old) is a highly successful architect and is covered by an employee-sponsored plan. Her husband, Dan (47 years old), however, is a Ph.D. student and unemployed. Compute the maximum deductible IRA contribution for each spouse in the following alternative situations. Note: Leave no answers blank. Enter zero if applicable. a. Susan's salary and the couple's AGI before any IRA contribution deductions is $224,000. The couple files a joint tax return.
Reggie is a self-employed taxpayer who turns 59 years old at the end of the year (2021). In 2021, his net Schedule C income was $300,000. This was his only source of income. This year, Reggie is considering setting up a retirement plan. What is the maximum amount he may contribute to the self-employed plan in each of the following situations? (Round your intermediate calculations to the nearest whole dollar amount.) a. He sets up a SEP IRA. b. He sets up an individual 401(k).
Terry and Jennifer, both in their 30s, file a joint income tax return for 2020. Terry’s wages are $26,000 and Jennifer’s wages are $34,000 for the year. Their total adjusted gross income is $60,000, and Joan is covered by a qualified pension plan at work but Terry is not. a. What is the maximum amount that Terry and Jennifer may each deduct for contributions to their traditional individual retirement accounts in 2020? b. If Jennifer's wages are $85,000 for 2020, instead of $34,000, and their adjusted gross income is $111,000, what is the maximum amount that Terry and Jennifer may each deduct for contributions to their traditional individual retirement accounts?
Lorna Hall’s real estate tax of $2,010.88 was due on December 14, 2019. Lorna lost her job and could not pay her tax bill until February 27, 2020. The penalty for late payment is 612%612% ordinary interest. (Use Days in a year table.)a. What is the penalty Lorna must pay? (Round your answer to the nearest cent.) Penalty Pay b. What is the total amount Lorna must pay on February 27? (Round your answer to the nearest cent.) Total Amount
In 2022, Elaine paid $2,320 of tuition and $1,300 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband. What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books in each of the following alternative situations? Note: Leave no answer blank. Enter zero if applicable. Required: Elaine's AGI is $95,500. Elaine's AGI is $178,000. Note: Round your intermediate calculations to the nearest whole dollar amount. Elaine's AGI is $223,000.
During 2023, Jacob, a 19-year-old full-time student, earned $4,500 during the year and was not eligible to participate in an employer-sponsored retirement plan. The general limit for deductible contributions to an IRA during 2023 is $6,500. How much of a tax-deductible contribution can Jacob make to an IRA? Multiple Choice $0 (Full-time students are not allowed to participate in IRAs) $1,500 $4,500 $6,500

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