Formal Letter on Subject: Advice on Income Tax Return and on Tax Matters

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

TAX
1
Memo
Date: April 19, 2020.
To: Rosy Evans.
From: (Name of the student), Tax expert.
Sub: Advice on income tax return and on tax matters
Rosy Evans being a Canadian resident is subjected to the income tax provisions applicable to the
citizens of the country hence, the amount of taxable income and income tax liability of her has
been calculated accordingly. As per the IT return of Rosy for 2019 her total income is $93,895
and net income is $89,395. The tax liability of the tax payer for the year is $12,108.88. She has
already paid tax instalments of $12,000 along with $224 as incentive for climate action hence,
she is eligible for a tax refund of $115.12 for the year from the Treasury.
Tax advice on different items:
Medical expenses paid for disable and dependant person by the tax payer is subjected to
deduction only if all necessary terms and conditions have been fulfilled. Since, no details have
been given about the compliance of such conditions by Rosy hence, only the standards amount of
$4,500 has been deducted from gross taxable income of Rosy to compute her net taxable income.
Contributions by the tax payers in certain funds including RRSP are allowed as deduction in full.
Rosy had a room of $69,000 to contribute to RRSP however, she hasn’t hence, she has lost an
opportunity of reducing her taxable income and tax liability on such income. Had she contributed
in RRSP the amount of taxable income of her and resultant tax liability both would have been
proportionately lower by the amount of contribution.