G, age 68, received pension income from the following sources in the current year: Old-age security...

G, age 68, received pension income from the following sources in the current year: Old-age security pension $7,100; Canada Pension Plan $9,000; and Pension income from former employer’s pension plan $34,000. What is the maximum elected split-pension amount that can be reported on the tax return of G’s spouse?

Expert Solution

Eligibility for pension splitting:

Age must be 65 Years or more

Payments eligible for pension splitting:

Registered Retirement Savings Plan
Registered Retirement Income Fund
Deferred Profit Sharing Plan

Payments not eligible for pension splitting:

Canada Pension Plan payments
Quebec Pension Plan payments
Earnings from a United States individual retirement account
Old Age Security payments

Maximum Pension Splitting:

Pension splitting allows higher-income spouses to lower their payable tax by sharing up to 50 % of eligible pension income with a spouse.

Calculation of Maximum elected split-pension amount that can be reported on the tax return of G’s spouse:

G's Age is 68, there fore he is eligible for pension splitting
Old-age security pension $7,100 and Canada Pension Plan $9,000 are not eligible for pension splitting
Assumed that former employer's pension plan is one of the pension plan among the eligible pension plans

There fore Maximum elected split-pension amount that can be reported on the tax return of G's spouse is up to 50 % ($34,000) = $ 17,000

ekkarill92 answered 4 months ago

The Public Pension System (20%): How are Old Age Security and Guaranteed Income Supplement benefits determined...

The Public Pension System (20%): How are Old Age Security and Guaranteed Income Supplement benefits determined and how are they financed? Are OAS & GIS subject to income tax? How do other sources of income effect OAS & GIS? Are there any exceptions/exemptions? According to the 2019 federal budget report, what proportion of all federal expenses constitute elderly benefits expenses? According to the Chief Actuary report, how are elderly transfer expenses projected to increase with population aging in the future?...

Ed (age 68) and Pam (age 61) are applying for the Age Pension. Given their assets...

Ed (age 68) and Pam (age 61) are applying for the Age Pension. Given their assets listed below, what is their level of assets assessed by Centrelink? Ed’s superannuation $375,000 Ed’s 20 year term allocated pension (purchase price, no residual value, held for 4 years.) $100,000 Pam’s superannuation (accumulation) $75,000 Managed funds (in Ed’s name) $28,500 Joint bank account $13,000 Two cars $25,000 Contents (firesale value) $10,000 Principal residence $550,000

Babcock Company received the following reports of its defined benefit pension plan for the current calendar year:

Babcock Company received the following reports of its defined benefit pension plan for the current calendar year: 19 PBO Balance, January 1 Service cost Interest cost Benefits paid Balance, December 31 Plan assets $610,000 Balance, January 1 361,000 Actual return 70,000 Annual contribution (90,000) Benefits paid $951,000 Balance, December 31 $550,000 55,000 222,000 (90,000) $ 737,000 The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the...

Emma, a U.S. resident, received the following income items for the current tax year. Determine the...

Emma, a U.S. resident, received the following income items for the current tax year. Determine the amount of U.S.-Source Income and Foreign-Source Income for each income item. If an amount is zero, enter"0". If required, round your answer to the nearest dollar. Transaction U.S.-Source Income Foreign-Source Income a. $600 interest from a savings account at a Florida bank. $ $ b. $5,000 dividend from U.S. Flower Company, a U.S. corporation that operates solely in the eastern United States. $ $...

Patient Profile G. is a 68-year-old man who goes to the hospital emergency department with a...

Patient Profile G. is a 68-year-old man who goes to the hospital emergency department with a complaint of left foot pain. He has a 7-year history of type 2 diabetes that is controlled with metformin (Glucophage) 500 mg orally twice daily. Subjective Data States he stepped on “something” in the yard a few days ago States he is unable to bear weight on the left foot Has been nauseated and “just haven’t felt good” Objective Data Physical Examination Blood pressure...

Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows: Pension from...

Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows: Pension from former employer $39,850 Interest income from Alto National Bank 5,500 Interest income on City of Alto bonds 4,500 Dividends received from IBM stock held for over one year 2,000 Collections on annuity contract he purchased from Great Life Insurance 5,400 Social Security benefits 14,000 Rent income on townhouse 9,000 The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260...

Norman is a 70 year old retired worker. Last year he received social security payment of...

Norman is a 70 year old retired worker. Last year he received social security payment of $20,000. To downsize, he sold his 40 year old house for $240,000 and bought a brand new apartment for $160,000. He paid $4000 to his real estate agent. He also sold some of his stock holdings and earned $15,000. He had to pay $1000 to his stockbroker as commission. What was Norman’s contributions to the GDP last year? Explain why/how you get your answer.

During the current year, Margaret and John received $24000 in Social Security benefits. The amount of...

During the current year, Margaret and John received $24000 in Social Security benefits. The amount of their adjusted gross income for the year before any Social Security income was $35000 and they received $9000 in tax-exempt income. What is the amount of Social Security income that will be included in AGI?

3. Suppose Social Security (government old age income support program) benefits are reduced by 25% in...

3. Suppose Social Security (government old age income support program) benefits are reduced by 25% in an effort to make the program more financially viable, while Social Security payroll tax rates are left unchanged. a) How would this likely affect annual hours of work among workers close to retirement age (say, age 60)? Explain. b) How would this likely affect annual hours of work among young workers (say, age 25)? Explain. c) Would your answer for young workers be different...

Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current...

Burrito Corporation has a defined benefit pension plan. Burrito received the following information for the current calendar year: Projected benefit obligation Balance, January 1 $ 4,100,000 Service cost 954,000 Interest cost 246,000 Benefits paid (1,000,000 ) Balance, December 31 $ 4,300,000 Plan assets Balance, January 1 $ 4,000,000 Actual return on plan assets 450,000 Contribution 800,000 Benefits paid (1,000,000 ) Balance, December 31 $ 4,250,000 The expected long-term return on plan assets is 12%. There were no other relevant data...

Question