Unit 4 Quiz
Question 1
In 2024 Amy and her spouse had net income for tax purposes of $50,000 and $40,000, respectively. Amy’s medical expenses consisted of a $1,000 bill she paid on
September 15, 2023, and a $3,000 bill she paid on September 30, 2024. Amy did not claim a medical expense tax credit in 2023. Amy’s mother lives with them
because she is physically infirm. Amy paid her mother’s medical expenses, which totalled $6,000, in 2024.
Which one of the following statements regarding Amy’s medical expense tax credit for 2024 is true?
a) When calculating her medical expense tax credit, Amy should include $4,000 as medical expenses.
b) A separate medical tax credit base calculation is required for Amy's mother.
c) Amy's mother must claim her own medical expenses.
d) Amy's spouse must claim the medical expenses, as her spouse has the lower net income for tax purposes.
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Option b) is correct. For medical expenses paid on behalf of dependent relatives (children who are over 18 years of age, parents, grandparents, nieces,
nephews), taxpayers can claim the medical expenses that exceed the lesser of 3% of the dependent's net income and $2,759 (2024 tax year).
Question 2
In 2024, Maurice received a $2,500 dividend from Encardo Inc., a large Canadian publicly traded company.
Which one of the following statements is true?
a) The federal dividend tax credit is $205.
b) The federal dividend tax credit is $260.
, c) The federal dividend tax credit is $950.
d) The federal dividend tax credit is $518.
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Option d) is correct. The eligible dividends are grossed up by 38%, and a federal dividend tax credit of 6/11 of the gross-up is applied. $2,500 × 38% ×
6/11 = $518.
Question 3
In 2024, Danuta received a $1,500 dividend from Balwin Co., a Canadian-controlled private corporation. Balwin has always had active business income below the
business limit.
Which one of the following statements is true?
a) Danuta may claim a federal dividend tax credit of $123.
b) Danuta may claim a federal dividend tax credit of $156.
c) Danuta may claim a federal dividend tax credit of $311.
d) Danuta may claim a federal dividend tax credit of $395.
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Option b) is correct. This is the amount of the federal dividend tax credit given that the dividend is a non-eligible dividend. $1,500 × 15% × 9/13 = $156.
Question 4
Delia is 46 years old and single. She lives alone and earned the following amounts during 2024:
Question 1
In 2024 Amy and her spouse had net income for tax purposes of $50,000 and $40,000, respectively. Amy’s medical expenses consisted of a $1,000 bill she paid on
September 15, 2023, and a $3,000 bill she paid on September 30, 2024. Amy did not claim a medical expense tax credit in 2023. Amy’s mother lives with them
because she is physically infirm. Amy paid her mother’s medical expenses, which totalled $6,000, in 2024.
Which one of the following statements regarding Amy’s medical expense tax credit for 2024 is true?
a) When calculating her medical expense tax credit, Amy should include $4,000 as medical expenses.
b) A separate medical tax credit base calculation is required for Amy's mother.
c) Amy's mother must claim her own medical expenses.
d) Amy's spouse must claim the medical expenses, as her spouse has the lower net income for tax purposes.
Hide question 1 feedback
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Option b) is correct. For medical expenses paid on behalf of dependent relatives (children who are over 18 years of age, parents, grandparents, nieces,
nephews), taxpayers can claim the medical expenses that exceed the lesser of 3% of the dependent's net income and $2,759 (2024 tax year).
Question 2
In 2024, Maurice received a $2,500 dividend from Encardo Inc., a large Canadian publicly traded company.
Which one of the following statements is true?
a) The federal dividend tax credit is $205.
b) The federal dividend tax credit is $260.
, c) The federal dividend tax credit is $950.
d) The federal dividend tax credit is $518.
Hide question 2 feedback
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Option d) is correct. The eligible dividends are grossed up by 38%, and a federal dividend tax credit of 6/11 of the gross-up is applied. $2,500 × 38% ×
6/11 = $518.
Question 3
In 2024, Danuta received a $1,500 dividend from Balwin Co., a Canadian-controlled private corporation. Balwin has always had active business income below the
business limit.
Which one of the following statements is true?
a) Danuta may claim a federal dividend tax credit of $123.
b) Danuta may claim a federal dividend tax credit of $156.
c) Danuta may claim a federal dividend tax credit of $311.
d) Danuta may claim a federal dividend tax credit of $395.
Hide question 3 feedback
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Option b) is correct. This is the amount of the federal dividend tax credit given that the dividend is a non-eligible dividend. $1,500 × 15% × 9/13 = $156.
Question 4
Delia is 46 years old and single. She lives alone and earned the following amounts during 2024:
