Question

Interview Notes Helen is 62. During the interview, she mentions that she always filed a joint...

Interview Notes
Helen is 62. During the interview, she mentions that she always filed a joint return with her husband who died in 2014.
Helen has not remarried and she pays all the cost of keeping up her home. She earned $28,500 in wages for 2018.
Helen provides all support for her two grandchildren who lived with her all year. Taylor is 12 years old and Ethan is 16 years old.
She does not have enough deductions to itemize. Her income tax before credits is $1,050.
Helen, Taylor, and Ethan are all U.S. citizens with valid Social Security numbers.

7. What is the amount of Helen's standard deduction?
A. $24,000
B. $19,600
C. $18,000
D. $12,000

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Answer #1

Answer:

Correct answer is:

C. $18,000

Explanation:

Tax Year =2018

Helen's husband died in 2014.

She is not remarried

She pays all the cost of keeping up her home

She provides all support for her two grandchildren who lived with her all year. Taylor is 12 years old and Ethan is 16 years old.

She is 62.

Based on facts her filing status is 'Head of Household' and her standard deduction for 2018 = $18,000.

As such option C is correct and other options A, B and D are incorrect.

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