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Canadian Tax Assignment

Author:
February 18th, 2020

Canadian Tax

Jack and Jill were married on December 1, 2018. Jill and her two children of a previous marriage moved into Jack’s home. Jill’s children are 14 and 16 and have no income.

            Jack and Jill have the following income for tax purposes for 2018:

                                                            Prior to the Marriage             Subsequent to the Marriage

            Jack                                                    $33,000                                   $3,000

            Jill                                                           9,800                                        800

            You have been asked to:

  1. Determine the optimum personal tax credits under section 118 for both Jack and Jill for 2018.
  2. How would your answer change in 2019 if the income levels remain the same?
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