Use the the marginal tax information in the table below to calculate the after tax monthly income Greg should expect from his retirement income. Greg expects $18608 annually from CPP, $7708 annually from OAS, and $85,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000. Simplified Marginal Tax Table Beginning of range End of range Tax at start of range Marginal rate - to 12,000 - 0% 12,000 to 20,000 - 15% 20,000 to 48,000 1,200 22% 48,000 to 95,000 7,360 30% 95,000 to 148,000 21,460 40% 148,000 to 210,000 42,660 45% 210,000 + above 70,560 50%
Use the the marginal tax information in the table below to calculate the after tax monthly income Greg should expect from his retirement income. Greg expects $18608 annually from CPP, $7708 annually from OAS, and $85,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000. Simplified Marginal Tax Table Beginning of range End of range Tax at start of range Marginal rate - to 12,000 - 0% 12,000 to 20,000 - 15% 20,000 to 48,000 1,200 22% 48,000 to 95,000 7,360 30% 95,000 to 148,000 21,460 40% 148,000 to 210,000 42,660 45% 210,000 + above 70,560 50%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Use the the marginal tax information in the table below to calculate the after tax monthly income Greg should expect from his retirement income. Greg expects $18608 annually from CPP, $7708 annually from OAS, and $85,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000.
| Simplified Marginal Tax Table | ||||
| Beginning of range | End of range | Tax at start of range | Marginal rate | |
| - | to | 12,000 | - | 0% |
| 12,000 | to | 20,000 | - | 15% |
| 20,000 | to | 48,000 | 1,200 | 22% |
| 48,000 | to | 95,000 | 7,360 | 30% |
| 95,000 | to | 148,000 | 21,460 | 40% |
| 148,000 | to | 210,000 | 42,660 | 45% |
| 210,000 | + | above | 70,560 |
50%
|
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