Question

Self-Stody Problem 1.7 See Appondix E for Solutions to Self-Study Probloms Indicate in each of the following independent situations the amount of the standard deduction the taxpayers should claim on their 2018 income tax returns. 1. Adom is 45 years old, in good health, and single. 2. Bill and Betty are married and file a joint return. Bill is 66 years old, and Betty is 60. 3. Charlie is 70, single, and blind 4. Debbie qualifies for head of household fling status, is 35 years old, and is in good health. 5, Elizabeth is 9 years old, and her only income is $3,600 of interest on a savings account. She is claimed as a dependent on her parents tax return. 6. Frank and Frieda are married with two dependent children. They file a joint return, are in good health, and both of them are under 65 years of age

Answer 1

1. 12000

(for single who is below 65 and is in good health, standard deduction in 2018 is 12000)

2. 25300

(for married filing jointly, the standard deduction is 24000 and extra 1300 for bill being over 65 years)

3. 13300

(for single who above 65 years and blind get 1300 extra on normal 12000 standard deduction)

4. 18000

(for head of household, the amount of standard deduction is 18000 for 2018)

5. 1050

in kiddie tax, the amount of standard deduction is greater of 1050 or (earned income + 350). As there is no earned income, the amount of standard deduction will be 1050.

6. 24000

(for married filing jointly, the amount of standard deduction in 2018 is 24000)