Question

1.Steven is a student and age 25. He is claimed as a dependent by his parents on their tax return in 2019. Steven has interest income of $1,800 and no other income. What is Steven's taxable income?

Group of answer choices

1,800

0

1,100

700

2. Rosemary received $1,000 graduation gift from her grandmother. This must be included in her gross taxable income.

Group of answer choices

True

False

3.Sherry won a $500 cash prize from a drawing at the local mall. Sherry can consider this a gift and does not have to include this in her taxable income.

Group of answer choices

True

False

4.Fred and Wilma are married taxpayers in 2019 and file a joint return. They are age 65 and 67 and in good health. For 2019, they have $59,000 in wages, $1,200 in interest income, and won $1,500 in a prize drawing. Fred and Wilma's deductions for adjusted gross income amount to $4,000 and their itemized deductions equal $12,000. They have no other dependents.

What is Fred and Wilma's 2019 tax?

Group of answer choices

3,296

1,940

1,356

3,351

Answer 1

Question 1:-

Per IRS, a dependent who has an unearned income greater than $1,100 should file an Income tax return.

Per the observation of the question,we understand that Steven was aged 25 and a full time student. He fails to meet the Qualifying child requirement due to his age but he is however claimed as a dependent on his parent's tax return. Since the unearned income of Steven is greater than $1,100 , the taxable income of Steven is Option A - $1,800.

Option B is incorrect as Steven has to report the taxable income and file the return.

Option C is incorrect as $1,100 is the threshold above which a dependent has to file a return and include in his taxable income.

Option D is incorrect per the above observations.

Kindly note that i have answered the first question per the HOMEWORKLIB RULESs. Request you to post the remaining question separately so that we can answer them as well. All the best and please let me know if you have any questions via the comments section .