Assignment 2 -Prepare a basic tax return for a single person with dependents

Objective:

• Study Schedule 1, understanding basic tax credits
• Study Schedule 5, understanding eligible dependant tax credits
• Study Schedule 6, understanding the Working Income Tax Benefit
• Study Form ON-BEN – Ontario Trillium Benefit

Instructions:

• This client is a single mother with a 3 year old daughter. She has T4s, medical expenses and rental payment.
• 1 Children – age 2
• Medical expenses $1502
• Rental Payment $12,000 total for the year.

Documents for Assignment:

T4 1
T4 2

Additional Questions to Complete:

1. What is a non-refundable tax credit? Provide 5 examples.
2. What is a refundable tax credit? Provide 2 examples.
3. How much taxes did the client saved by claiming her child as eligible dependant?
4. How much did the client get by claiming the working income tax benefit?
5. How much did the client get by claiming rent paid in Ontario?