During 2020, Canadian resident Biff Johnson has calculated his Taxable Income to be $69,600. Instructions: Calculate...

During 2020, Canadian resident Biff Johnson has calculated his Taxable Income to be $69,600.

Instructions:

Calculate Biff's 2020 federal Tax Payable before consideration of any tax credits. Complete the six (6) blanksin the table below:

On First
On Next At %
Federal Tax Payable Before Credits

Expert Solution


Taxable Income	$69,600

Tax Calculated

Slab	Slab Rate		You Pay Tax	Taxable account within slab	Tax = Income within slab*Slab rate
$0 to $9875	10%	You pay 10 % on your income of $9875	On 1st	$9,875	$988
$9876 to $40125	12%	You pay 12 % on your income exceeding 9875 upto $40125 Difference is $ 30250 ($ 40,125-$9,875)	On Next	$30,250	$3,630
$40126 to $85525	22%	You pay 22 % on your income exceeding $40125 upto $ 69600 Difference is $ 29475 ($ 69,600-$40,125)	On Balance	$29,475	$6,485
		Total		$69,600	$11,102

Answer Tax on total Income of $ 69,600 is $ 11,102 Rounded off to 11,100



Additional Slab Rates

$ 85526 to $ 163300	24%
$ 163301 to $ 207350	32%
$ 207351 to $ 518400	35%
$518401 or more	37%

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