Question

Exercise 3-18 (LO. 2) Compute the 2019 standard deduction for the following taxpayers. If an amount is zero, enter "O". Click here to access the standard deduction table to use. 27.000 a. Ellie is 15 and claimed as a dependent by her parents. She reports $800 in dividends income and $1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return, Ruby is age 66, and Woody $ is 69. Their taxable retirement income is $10,000 C. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500, and her interest income is $125. Frazier, age 55, is married but is filing a separate return. His wife Emma itemizes her deductions. o Feedback

Answer 1

An dependent will get a standard deduction greater of 1100 or earned income + 350. Therefore Standard deduction is 1750 =1400+350 Maried and elders will get additional 1300 each with a normal standard deduction of 24000 for 2018: 27000 =124400)+(1300*2) A single elders will get additional 1650 with a normal standard deduction of 12200 for 2019 but dependency deduction will be adjusted 2750 =(1100) or (500+350)+(1650) Frazier is not eligible to use the standard deduction and therefore must itemized, because he is married filing a separate return when his spouse itemizes deductions