Ms. Jessie Waud found a position in retail sales in September 2021. During the remainder of that year, she received gross employment income of $21,500. Prior to 2021, Ms. Waud had no earned income and made no contributions to either an RRSP or a TFSA View the RRSP information. View the common-law partner information. View the other sources of income or loss. Read the requirements. View the additional information. Requirement A. Calculate Ms. Waud's 2021 employment income. What is Ms. Waud's 2021 employment income? Requirement B. Determine Ms. Waud's maximum deductible RRSP contribution for 2022. (Round your answer to the nearest whole dollar.) What is Ms. Waud's 2021 employment income? Requirement C. As Ms. Waud's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 20227 OA. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022 in 2022. She should also contribute the maximum allowable amount to a TFSA and consider overcontributing up to $2,000 to her RRSP Contributions should be made as soon as possible to maximize the earnings that will accrue B. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022. However, it would be advantageous to defer this deduction until 2023. She should also contribute the maximum allowable amount to a TFSA and consider overcontributing up to $2,000 to her RRSP. Contributions should be made as soon as possible to maximize the earnings that will accrue. OC. Ms. Waud should not contribute to her RRSP for the year 2022. However, she should contribute the maximum allowable amount to a TFSA as soon as possible to maximize the earnings that will accrue. OD. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022. However, she should not contribute to a TFSA or overcontribute to the RRSP It does not matter when the contributions are made Common-law Partner Information RRSP Information - X Requirements X Prior to July 2021, Ms. Waud had been supported by and living with her common-law partner. On June 30, 2021, they formally separate and sign a document which provides Ms. Waud with a lump-sum payment of $82,000 plus $1,300 per month in spousal support. The lump-sum payment was deposited in a savings account which eamed interest of $560 during the remainder of 2021. Sho receives six months of support payments in 2021. Ms. Waud did not contribute to an RRSP during 2021. However, Jessie's employer sponsored a money purchase RPP to which she contributed $1,300 during 2021. This contribution was matched by a $1,300 contribution by Jessie's employer A. Calculate Ms. Waud's 2021 employment income. B. Determine Ms. Waud's maximum deductible RRSP contribution for 2022 C. As Ms. Waud's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 2022? Other income (loss) sources In addition to her employment income and interest income, Ms. Waud had the following in 2021 Eligible dividends from Canadian public companies of $900. A business loss of $2.600 from a business she carries on as a sole proprietor that provides a web-based photos on canvas service. An inheritance of $47,000 from an uncle - X Additional Information For 2021, Ms. Waud's income places her in the lowest federal income tax bracket of 15% Further, she anticipates that her 2022 net income will also be subject to income tax at that same rate. However, she has been promised a management position beginning in January 2023. This position involves a significant increase in salary and this, combined with her increasingly profitable web-based business, will result in increased net income that will put her in the 26% federal income tax bracket Print Done Print Done Print Done Next
Ms. Jessie Waud found a position in retail sales in September 2021. During the remainder of that year, she received gross employment income of $21,500. Prior to 2021, Ms. Waud had no earned income and made no contributions to either an RRSP or a TFSA View the RRSP information. View the common-law partner information. View the other sources of income or loss. Read the requirements. View the additional information. Requirement A. Calculate Ms. Waud's 2021 employment income. What is Ms. Waud's 2021 employment income? Requirement B. Determine Ms. Waud's maximum deductible RRSP contribution for 2022. (Round your answer to the nearest whole dollar.) What is Ms. Waud's 2021 employment income? Requirement C. As Ms. Waud's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 20227 OA. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022 in 2022. She should also contribute the maximum allowable amount to a TFSA and consider overcontributing up to $2,000 to her RRSP Contributions should be made as soon as possible to maximize the earnings that will accrue B. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022. However, it would be advantageous to defer this deduction until 2023. She should also contribute the maximum allowable amount to a TFSA and consider overcontributing up to $2,000 to her RRSP. Contributions should be made as soon as possible to maximize the earnings that will accrue. OC. Ms. Waud should not contribute to her RRSP for the year 2022. However, she should contribute the maximum allowable amount to a TFSA as soon as possible to maximize the earnings that will accrue. OD. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022. However, she should not contribute to a TFSA or overcontribute to the RRSP It does not matter when the contributions are made Common-law Partner Information RRSP Information - X Requirements X Prior to July 2021, Ms. Waud had been supported by and living with her common-law partner. On June 30, 2021, they formally separate and sign a document which provides Ms. Waud with a lump-sum payment of $82,000 plus $1,300 per month in spousal support. The lump-sum payment was deposited in a savings account which eamed interest of $560 during the remainder of 2021. Sho receives six months of support payments in 2021. Ms. Waud did not contribute to an RRSP during 2021. However, Jessie's employer sponsored a money purchase RPP to which she contributed $1,300 during 2021. This contribution was matched by a $1,300 contribution by Jessie's employer A. Calculate Ms. Waud's 2021 employment income. B. Determine Ms. Waud's maximum deductible RRSP contribution for 2022 C. As Ms. Waud's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 2022? Other income (loss) sources In addition to her employment income and interest income, Ms. Waud had the following in 2021 Eligible dividends from Canadian public companies of $900. A business loss of $2.600 from a business she carries on as a sole proprietor that provides a web-based photos on canvas service. An inheritance of $47,000 from an uncle - X Additional Information For 2021, Ms. Waud's income places her in the lowest federal income tax bracket of 15% Further, she anticipates that her 2022 net income will also be subject to income tax at that same rate. However, she has been promised a management position beginning in January 2023. This position involves a significant increase in salary and this, combined with her increasingly profitable web-based business, will result in increased net income that will put her in the 26% federal income tax bracket Print Done Print Done Print Done Next
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 21P
Related questions
Question
Transcribed Image Text:Ms. Jessie Waud found a position in retail sales in September 2021. During the remainder of that year, she received gross employment income of $21,500. Prior to 2021, Ms. Waud had no earned income and made no contributions to either an RRSP or a TFSA
View the RRSP information.
View the common-law partner information.
View the other sources of income or loss.
Read the requirements.
View the additional information.
Requirement A. Calculate Ms. Waud's 2021 employment income.
What is Ms. Waud's 2021 employment income?
Requirement B. Determine Ms. Waud's maximum deductible RRSP contribution for 2022. (Round your answer to the nearest whole dollar.)
What is Ms. Waud's 2021 employment income?
Requirement C. As Ms. Waud's personal financial consultant, what advice would you give her regarding her TFSA and RRSP contribution and deduction for 20227
OA. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022 in 2022. She should also contribute the maximum allowable amount to a TFSA and consider overcontributing up to $2,000 to her RRSP Contributions should be made as soon as possible to maximize the earnings that will accrue
B. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022. However, it would be advantageous to defer this deduction until 2023. She should also contribute the maximum allowable amount to a TFSA and consider overcontributing up to $2,000 to her RRSP. Contributions should be made as
soon as possible to maximize the earnings that will accrue.
OC. Ms. Waud should not contribute to her RRSP for the year 2022. However, she should contribute the maximum allowable amount to a TFSA as soon as possible to maximize the earnings that will accrue.
OD. Ms. Waud should contribute the maximum deductible amount to her RRSP for the year 2022. However, she should not contribute to a TFSA or overcontribute to the RRSP It does not matter when the contributions are made
Common-law Partner Information
RRSP Information
- X
Requirements
X
Prior to July 2021, Ms. Waud had been supported by and living with
her common-law partner. On June 30, 2021, they formally separate and sign a
document which provides Ms. Waud with a lump-sum payment of $82,000 plus
$1,300 per month in spousal support. The lump-sum payment was deposited in a
savings account which eamed interest of $560 during the remainder of 2021. Sho
receives six months of support payments in 2021.
Ms. Waud did not contribute to an RRSP during 2021. However,
Jessie's employer sponsored a money purchase RPP to which
she contributed $1,300 during 2021. This contribution was
matched by a $1,300 contribution by Jessie's employer
A. Calculate Ms. Waud's 2021 employment income.
B. Determine Ms. Waud's maximum deductible RRSP contribution for 2022
C. As Ms. Waud's personal financial consultant, what advice would you give her
regarding her TFSA and RRSP contribution and deduction for 2022?
Other income (loss) sources
In addition to her employment income and interest income, Ms. Waud had the
following in 2021
Eligible dividends from Canadian public companies of $900.
A business loss of $2.600 from a business she carries on as a sole proprietor
that provides a web-based photos on canvas service.
An inheritance of $47,000 from an uncle
- X
Additional Information
For 2021, Ms. Waud's income places her in the lowest federal income tax bracket of
15% Further, she anticipates that her 2022 net income will also be subject to income tax
at that same rate. However, she has been promised a management position beginning in
January 2023. This position involves a significant increase in salary and this, combined
with her increasingly profitable web-based business, will result in increased net income
that will put her in the 26% federal income tax bracket
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