Question

#2-42 Filing Requirement. Which of the following taxpayers must file a 2018 return? Explain why or why not?

a. Amy, age 19 and single, has $8,050 of wages, $800 of interest, and $350 of self- employment income.

b. Betty, age 67 and single, has a taxable pension of $9,100 and Social Security benefits of $6,200.

c. Chris, age 15 and single, is a dependent of his parents. Chris has earned income of $1,900 and interest of $400.

d. Dawn, age 15 and single, is a dependent of her parents. She has earned income of $400 and interest of $1,600.

e. Doug, age 25, and his wife are separated. He earned $5,000 while attending school during the year.

Answer 1

(a) -- Amy, age 19 and single, has $8050 of wages, $800 of interest, and $350 of self- employment income.

Answer -

Amy need not file a 2018 tax return, because her gross income is less than the threshold of $12000 and her​ self-employment income is less than​ $400.

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(b) -- Betty, age 67 and single, has a taxable pension of $9100 and Social Security benefits of $6200.

Answer -

Betty need not file a 2018 tax return, because her gross income is less than $13600.

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(c) -- Chris, age 15 and single, is a dependent of his parents. Chris has earned income of $1900 and interest of $400.

Answer -

Chris must​ file a 2018 tax return, because his gross income of​ $2300 exceeds his standard deduction of $2250.

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(d) -- Dawn, age 15 and single, is a dependent of her parents. She has earned income of $400 and interest of $1600.

Answer -

Dawn must​ file a 2018 tax return, because her unearned income is over ​$1050 and her total gross income exceeds her standard deduction.

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(e) -- Doug, age 25, and his wife are separated. He earned $5000 while attending school during the year.

Answer -

Doug must​ file a 2018 tax return, because his gross income is over $5 and he is married and not living with his spouse.