Financial Trust

Financial Trust

Sonja – SIN 805020021 (born on December 2, 1972) is married to Jeremy Anderson SIN 805020351 (born on April 5, 1967). They live in Alberta, Canada. They are the parents of three children:

  • Derrick – born on July 9, 2000;
  • Wayne – born on January 15, 2005; and
  • Chelsea – born on May 28, 2009.

Chelsea is unable to walk and uses a wheelchair. She has Form T2201 on file with the CRA and Jeremy has claimed the disability transfer for Chelsea in previous years.

In 2014, Sonja had suffered an injury that caused her to go blind. She has Form T2201 on file with CRA. For the first part of 2019, she received $8,500 in income from a group sickness or accident insurance plan, which was an employee-pay-all plan that only she contributed to. She never received a slip for this benefit. She received Worker’s Compensation Benefits (WCB) of $7,800, reported on a T5007 slip.

In April, Sonja inherited $23,000 from her late great-aunt. She set $15,000 aside with other savings to use as a down payment on a new home later in the year and put $1,000 each into savings accounts for her three children. Each of the children earned $25 of interest from these savings accounts. The bank did not issue information slips for the interest paid. Sonja contributed the remaining $5,000 of inheritance to a spouse or common-law partner RRSP.

Sonja’s RRSP limit is $4,000, and Jeremy’s is $23,000.

Jeremy worked for Grant Manufacturing in Old City. In February, Jeremy’s union called a strike; during that time, he received $1,200 in strike pay. Jeremy has a receipt for $450 paid in union dues last year.

May was Jeremy’s last month with Grant Manufacturing. He has a receipt for $6,000 from the portion of the retiring allowance that he contributed into his RRSP.

In June, Jeremy took out $2,000 from the RRSP Sonja had contributed for him in April. On August 1, he started a new job at AA Consulting Inc. in Your City.

For the last 10 years, the family has resided in a house they owned at 789 King Street, Old City, YP, for which they paid $1,425 in property taxes for the first half of the year. On July 1st, they moved to their new home at 522 Orangewood Drive, Your City, which is 120 km away from their old home (assume a per km rate of $0.50), The family did not stop for any meals when travelling and did not live in any temporary lodging. They paid Gentle Moves $2,500 for the transportation of their household and $100 for boxes and other moving supplies.

The old house, which they originally bought for $300,000 in Old City, was sold in July for $400,000. They paid $1,300 in legal fees related to the sale and a $20,000 commission to the real estate agent. They bought their new home for $450,000 and paid $1,750 for legal fees to purchase the home and $300 for transfer of the title. Property taxes on the new home for the last 6 months of the year amounted to $1,800.

Their new home in Your City is 8 km from AA Consulting Inc. and 12 km from ABC Inc. The old home was 122 km from AA Consulting Inc. and 115 km from ABC Inc. Neither employer paid them anything to move to Your City.

Before moving into the new home, the family had spent $15,000 from the mortgage to renovate the house in order to make it accessible for Chelsea’s wheelchair. These renovations did not increase the value of the house and they would not typically have been incurred by persons who do not have severe and prolonged mobility impairment.

Sonja went back to work in September but in order to do so she required specialized job coaching; she also needed to purchase equipment and software to allow her to read print. During the first month she worked at ABC Inc., she paid for attendant care to help her get acclimatized to the job. She has a note from a doctor certifying that the special services were necessary in order to work and she has a prescription for the software and equipment. Altogether, these expenses came to $6,100 and Sonja has decided to claim them as disability supports and not medical expenses.

In the fall, Jeremy and Sonja asked her mother, Shauna Davis, to come over on nights when both of them worked and keep an eye on the kids. Over that time, they paid her a token amount of $800 for this service. Shauna gave them two $400 receipts (one for Chelsea and one for Wayne) that included her Social Insurance Number. Shauna was the only child care provider they had last year.

During the first part of the year, Derrick worked at the local mall and has a T4 from the Dollar Store.

In the fall, Derrick attended university. He has a T2202 slip showing 4 months of full-time enrolment and tuition fees of $3,200. Derrick received a scholarship of $6,235 from the local university.

Wayne earned $2,000 doing odd jobs during the summer.

Last year, Sonja paid $1,500 to an orthodontist to fix Wayne’s teeth.

Sonja has been supporting the Salvation Army for many years. Last year she donated $350.

All information slips are reproduced below:


– T4RSP – Financial Trust – for Anderson Jeremy

Box 22 -$ 2,000.00

Box 30 – $200.00

Box 12 – 805020351

Box 36 – 805020021

Box 24 – "Yes"

– T4 – ABC Inc – for Anderson Sonja

Box 14 – $18,333.40

Box 16 – $756.35

Box 18 – $296.95

Box 22 – $2,540.20

– T4 – Grant Manufacturing for Anderson Jeremy

Box 10 – AB, Canada

Box 14- $23,076.92

Box 16 -$ 998.42

Box 18 – $373.85

Box20 – $1,020.00

Box 52 -$ 2,085.00

Box 22 – $11,805.30

Box 44 – $450.00

Box 38 – $3,400.00

Box 39 – $1,700.00

Box 40 – $150.00

Box 66 – $8,000.00

Box 67 – $12,000.00

– T4 – AA Consulting Inc for Anderson Jeremy

Box 10 – AB, Canada

Box 14- $32,621.00

Box 16 -$ 1,485.17

Box 18 – $528.46

Box20 – $900.00

Box 52 -$ 1,800.00

Box 22 – $6,417.90

– T5007 – Workers' Compensation Board for Anderson Sonja

Box 10 – $7,800.00

– T4 – Dollar Store for Anderson Derrick

Box 10 – AB, Canada

Box 14 – $10,180.00

Box 16 – $340.68

Box 22 – $150.00

– T4A – Calgary University for Anderson Derrick

Box 105 – $6,235.00

– T2202 – Calgary University for Anderson Derrick

Box 22 – 4

Box 23 – $3,200.00

Box 26 – $3,200.00

1). For each of the following income types and for each family member (if applicable):

  • Itemize all amounts of this type (indicate who received it and how much);
  • Determine how much of this income, if any, is required to be reported on a tax return;
  • For each taxpayer, state the line(s) on the tax return or forms/schedules on which this should be reported an the total amount to be reported;
  • If any item is not reportable for tax purposes, write "nil" and explain the reason why.

Group sickness or accident insurance plan benefit:

WCB benefit:


Remuneration from employer (salaries, wages, taxable benefits, etc.):

Strike pay:

Retiring allowance:


Capital gain from sale of the house:

Odd jobs:

2). Who should report the bank interest of $25 that each of the children received? Explain why.




3). Who should report the $2,000 Jeremy had taken out of the RRSP that Sonja had contributed? And who can claim the withholding tax on the T4RSP? Explain why.

4).  Jeremy, Sonja and Derrick are all filing returns this year. For each of the following expense types:

  • Itemize the claim (list all expenses of that type).
  • State the total dollar amount, if any, which may be claimed and explain.
  • Indicate which forms or schedules need to be completed for the claim.
  • State the line number where the claim should be entered.
  • Indicate on whose return it must be claimed: Jeremy, Sonja, or Derrick (if both Sonja and Jeremy are eligible to claim an item, write "either"

If any item cannot be claimed for tax purposes, explain why.

Child care:

Moving expenses:

Spousal RRSP contribution:

Retiring allowance transfer to RRSP:

Charitable donation:

Disability supports:

Home accessibility expenses:

Medical expenses:

Home buyers' amount:

Union dues:

5). For each of the following boxes on Jeremy's T4 slip, please answer:

  • What does this box represent?
  • On which line will it go on the tax return? If it is not to be entered on the tax return, state the reason why.

Box 38:

Box 39:

Box 66:

Box 67

6). Calculate Derrick's total federal tuition amount.

  • How much will he use on his return?
  • What form or schedule does he have to complete?
  • What can he do with his unused amount, if any? Explain your ans

7). Assume Jeremy will claim the children on his tax return. What is the maximum amount Jeremy can claim for each of the following? State the line number on which it should be claimed.

Canada caregiver amount for children under 18 years of age:

Disability amount transferred from a dependent (not a spousal transfer).

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