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Jack and Jill were married on December 1, 2018. Jill and her two children of a previous marriage moved into Jack’s home. Jill’s children are 14 and 16 and have no income. Jack and Jill ha
Jack and Jill were married on December 1, 2018. Jill and her two children of a previous marriage moved into Jack’s home. Jill’s children are 14 and 16 and have no income.
Jack and Jill have the following income for tax purposes for 2018:
Prior to the Marriage Subsequent to the Marriage
Jack $33,000 $3,000
Jill 9,800 800
You have been asked to:
(a) Determine the optimum personal tax credits under section 118 for both Jack and Jill for 2018.
(b) How would your answer change in 2019 if the income levels remain the same?
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