Personal Tax Scenario Worksheet (Total)

Transcription

1 Personal Tax Scenario Worksheet (Total) This worksheet projects the tax effects of income, deduction, and tax credit situations, and determines aftertax amounts. Your client s situation: Your clients would like to know the net cash their family will receive after taxes Mr. A o Tax year 2016 o Tax province ON o Employment income 150,000 Subject to CPP Yes Subject to EI No o Eligible dividends 50,000 o Interest income 5,000 o RRSP deduction 22,000 Mrs. A o Tax province ON o Employment income 30,000 Subject to CPP Yes Subject to EI No o Eligible dividends 100,000 o Childcare deduction 8,000 Junior A o Tax province BC o Employment income 10,000 o Eligible dividends 70,000 Subject to CPP and EI Yes o Tuition paid 5,000 Advise your client of the net cash received. TTI helps you provide quick and effective tax planning and tax accounting solutions for your clients. sales@taxtemplates.ca

2 YouTube example Prepared Andrew May 1, 2016 Personal Tax Scenario Worksheet PDF example Reviewed 2017 Prepared May 1, 2016 Worksheet support Tax rates in effect Top section Updated April T1 section T1 details Tax results Mr. A Mrs. A Junior A Taxpayer Taxpayer Taxpayer Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Gross cash Net cash before personal taxes (Federal taxes) (Provincial taxes) (CPP on business income) (EI on business income) (Social benefits repayment) Provincial or territorial credits Net cash before CPP & EI (CPP on employment income) (EI on employment income) Net cash Average tax rate 205, ,000 80, , ,000 80,000 (34,336) (11,897) (3,278) (20,765) (5,845) (89) 149, ,258 76,633 (2,544) (1,312) (322) (188) 147, ,946 76, % 14.66% 4.85% Notes and calcs Tax balance Mr. A Mrs. A Junior A Taxpayer Taxpayer Taxpayer Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Total income taxes payable (Source deductions) (Instalments paid) Balance owing (refund) 55,101 17,742 3,367 55,101 17,742 3,367 Notes and calcs

3 YouTube example Prepared Andrew May 1, 2016 Personal Tax Scenario Worksheet PDF example Reviewed 2017 Prepared May 1, 2016 Worksheet support Tax rates in effect Top section Updated April T1 section T1 details Personal tax calculation Personal tax calculation Personal tax calculation Taxpayer details Taxpayer details Taxpayer details Name Mr. A Mrs. A Junior A Description Scenario 1 Scenario 2 Scenario 3 Tax province ON ON BC Tax year ending Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Date of birth Net capital loss carryforwards Taxable income Taxable income Taxable income Employment 150,000 30,000 10,000 CPP Old Age Security Eligible pension Other than eligible dividends Grossup Eligible dividends 50, ,000 70,000 Grossup 19,000 38,000 26,600 Interest and other investment 5,000 Net capital gains (losses) (Nontaxable portion) Other income Net business income (loss) Total income (loss) 224, , ,600 (RRSP deduction) (22,000) (CPP on business) (Social benefits repayment) (Child care expenses) (8,000) Net income (loss) 202, , ,600 (Non capital losses of other years) (Net capital losses of other years) Taxable income (loss) 202, , ,600 Cash received, before taxes 205, ,000 80,

4 YouTube example Prepared Andrew May 1, 2016 Personal Tax Scenario Worksheet PDF example Reviewed 2017 Prepared May 1, 2016 Worksheet support Tax rates in effect Top section Updated April T1 section T1 details Tax credits for Mr. A Tax credits for Mrs. A Tax credits for Junior A Carryforwards Carryforwards Carryforwards Charitable donations 2015 or before 75% Charitable donations 2015 or before no limit Charitable donations 2016 or after 75% Charitable donations 2016 or after no limit Tuition and related amounts federal Tuition and related amounts provincial Current year Current year Current year Calculate CPP Yes Yes Yes Calculate EI No No Yes employment Claim disability amount Charitable donations 75% Charitable donations no limit Tuition and related amounts federal 5,000 Other federal credits credit rate Tuition and related amounts provincial 5,000 Other provincial credits credit rate Other than eligible dividends before rate change Eligible dividends before rate change

5 YouTube example Prepared Andrew May 1, 2016 Personal Tax Scenario Worksheet PDF example Reviewed 2017 Prepared May 1, 2016 Worksheet support Tax rates in effect Top section Updated April T1 section T1 details Tax details for Mr. A Tax details for Mrs. A Tax details for Junior A Federal Federal Federal Amount Rate Tax Amount Rate Tax Amount Rate Tax Bracket 1 45, % 6,792 45, % 6,792 45, % 6,792 Bracket 2 45, % 9,283 45, % 9,283 45, % 9,283 Bracket 3 49, % 12,955 49, % 12,955 16, % 4,170 Bracket 4 59, % 17,287 19, % 5,687 Bracket 5 2, % 660 (Basic personal amount) (11,474) 15.00% (1,721) (11,474) 15.00% (1,721) (11,474) 15.00% (1,721) (Age amount) (CPP credit employment) (2,544) 15.00% (382) (1,312) 15.00% (197) (322) 15.00% (48) (CPP credit business) (EI credit employment) (188) 15.00% (28) (EI credit business) (Canada employment amount) (1,161) 15.00% (174) (1,161) 15.00% (174) (1,161) 15.00% (174) (Pension income amount) (Disability amount self) (Tuition and related amounts) (5,000) 15.00% (750) (Other credits credit rate) (Donations and gifts) (Dividend credit other) (Dividend credit eligible) (69,000) 15.02% (10,364) (138,000) 15.02% (20,727) (96,600) 15.02% (14,509) Alternative Minimum Tax 265 Federal taxes 34,336 11,897 3,

6 YouTube example Prepared Andrew May 1, 2016 Personal Tax Scenario Worksheet PDF example Reviewed 2017 Prepared May 1, 2016 Worksheet support Tax rates in effect Top section Updated April T1 section T1 details Tax details for Mr. A Tax details for Mrs. A Tax details for Junior A Provincial Provincial Provincial Amount Rate Tax Amount Rate Tax Amount Rate Tax Bracket 1 41, % 2,098 41, % 2,098 38, % 1,933 Bracket 2 41, % 3,801 41, % 3,801 38, % 2,942 Bracket 3 66, % 7,469 66, % 7,469 11, % 1,188 Bracket 4 52, % 6,323 10, % 1,216 18, % 2,311 Bracket % 9 Bracket 6 (Basic personal amount) (10,011) 5.05% (506) (10,011) 5.05% (506) (10,027) 5.06% (507) (Age amount) (CPP credit employment) (2,544) 5.05% (128) (1,312) 5.05% (66) (322) 5.06% (16) (CPP credit business) (EI credit employment) (188) 5.06% (10) (EI credit business) (Canada employment amount) (Pension income amount) (Disability amount self) (Tuition and related amounts) (5,000) 5.06% (253) (Other credits calculated amounts) (Other credits credit rate) (Donations and gifts) Alternative Minimum Tax 89 Surtaxes 7,709 4,883 (Dividend credit other) (Dividend credit eligible) (69,000) 10.00% (6,900) (138,000) 10.00% (13,800) (96,600) 10.00% (9,660) (Tax reduction) Health tax Provincial taxes 20,765 5,

7 Personal Tax Scenario Worksheet Personal Tax Results Base Income Prepared May 1, , % 200, % 20.00% 150, % 100, % 50, % Mr. A Mrs. A Junior A Taxpayer Taxpayer Taxpayer Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Net cash before personal taxes 205, ,000 80,000 Less: Taxes payable 57,646 19,054 3,877 Net cash 147, ,946 76,123 Average tax rate 28.12% 14.66% 4.85% Tax province ON ON BC ON ON ON Tax year ending Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31,

8 Personal Tax Scenario Worksheet Taxes Payable Personal Base Income Prepared May 1, ,000 60,000 50,000 40,000 30,000 20,000 10,000 Mr. A Mrs. A Junior A Taxpayer Taxpayer Taxpayer Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 Federal taxes 34,336 11,897 3,278 Provincial taxes 20,765 5, CPP and EI 2,544 1, Social benefits repayment (Provincial or territorial credits) Total income taxes + CPP + EI 57,646 19,054 3,877 Tax province ON ON BC ON ON ON Tax year ending Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31, 2016 Dec 31,