Question

Self-Study Problem 1.4 Indicate by for 2018 in each of the following independent siftuations: See Appendix E for Solutions to Self-Study Problems a check mark whether the following taxpayers are required to file a return Filing Required? Yes No 1. Taxpayer (age 45) is single with income of $10,000. 2. Husband (age 67) and wife (age 64) have an income of $25,000 and file a joint return. 3. Taxpayer is a college student with a salary from a parttime job of $6,500. She is claimed as a dependent by her parents. 4. Taxpayer has net earnings from self-employment of $4,000. 5·Taxpayers are married with income of $15,900 and file a joint return. They expect a refund of $600 from excess withholding 6. Taxpayer is a waiter and has unreported tips of $450. 7. Taxpayer is a qualifying widow (age 48) with a dependent son (age 18) and income of $22,800.

Answer 1

1. No

Filings depends upon status and age. In 2018, the minimum income amount for single filing status if under age 65 is $12,000, Hence taxpayer not required to file return

2. No

If one spouse under age 65 and one age 65 or older, than applicable minimum income amount is $25,300

3. Yes

For 2018, the standard deduction amount for an individual claimed as a dependent by another taxpayer cannot exceed the $1,050

4. Yes

If Taxpayer earn from self employment The amount of money need to earn and to file a tax return is $400. As a freelancer, Taxpayer must pay self-employment taxes in addition to regular income taxes. Self-employment taxes start if you earn $400 or more. Therefore taxpayer must file a tax return if gross $400 or more

5. Yes

If taxpayer received pay during the year and had income tax withheld, they may want to file a return to obtain a refund of the amount withheld

6. Yes

In this case, not only must Taxpayer pay income tax on these earnings, he also need to calculate the Social Security and Medicare taxes you owe using Form 4137.

7. No

the limit for widow with dependent child if under age 65 is $24,000, hence not required to file return