Income Tax Return Discussion Letter 2022

Running head: TAX
Tax
Name of the Student:
Name of the University:
Authors Note:

TAX
1
Memo
Date: 19th April, 2020.
To: Rosy Evans
From: (Name of the student).
Sub: Income tax return file along with discussion on certain tax related matters.
As per the income tax return file it is clear that your total income for 2019 is $81,895 and net
income is $77,395 after deducting disability support deduction of $4,500 for your dependant
mother. Considering that the quarterly tax instalment paid for the year is $12,000 along with
$224 as climate action incentive the net tax refundable for the year is $3,406.55.
Medical disability amount:
Not all medical amount incurred on the disable and dependant mother of Rosy are allowed as
deduction. Instead a standard deduction of $4,500 has been taken as to take item wise deduction
for each amount paid for the medical expenses of Rose Evans needed strict compliance with
number of provisions of income tax act in Canada. Considering the lack of information it was not
possible to determine whether those provisions have been complied by Rosy. Hence, only
disability support deduction has been considered in income tax return of Rosy Evans.
RRSP Contribution:
RRSP contributions are tax deductible hence, such contributions would have resulted in
reduction of taxable amount and resultant tax liability. Thus, with maximum amount of RRSP
contribution Rosy could have reduced her net taxable income and resultant income tax liability
proportionately.