Question

In 2020, David is age 78, is a widower, and is being claimed as a dependent by his son. How does this situation affect the following: (a) filing requirements, (b) the basic standard deduction, and (c) any additional standard deduction amounts. a. Indicate whether the following statements are "True" or "False" regarding David's own individual filing requirement. False • An individual who can be claimed as a dependent on another person's tax return must file a tax return if his or her earned income exceeds $1,100. False • An individual who can be claimed as a dependent on another person's tax return does not have to file a tax return, regardless of the amount of income earned. True • The gross income filing requirement for an individual who can be claimed as a dependent on another person's tax return varies based on the amount (if any) of earned and unearned income the individual has. b. Indicate whether the following statements are "True" or "False" regarding the standard deduction allowed to David. True • All individuals, including those claimed as a dependent on another person's tax return, are allowed the full standard deduction based on their filing status. • An individual who can be claimed as a dependent on another person's tax return has a limited basic standard deduction equal to the greater of $1,100 or the sum of the individual's earned income for the year plus $350 (but not to exceed the standard deduction) • An individual who can be claimed as a dependent on another person's tax return is not allowed to claim a standard deduction.

Answer 1

A. 1. False becasue the minimum income tax for the dependent to file tax return is $13,600 earned and $2,650 for unearned income under the age category of above 65.

2. False becasue whether one is dependent or independent, he has to file the tax return seperately no matter whether his individual filling return too, but dependent has also to file the return seperately.

3. True becasue minimun liability or the minimun income tax dependent on the earned and unearned income of the individual seperately, whether he is dependent or independent.

B. 1. False becasue  their standard deduction cannot be more than the total income tax. For dependent, they are eligible for either 1,100 or the total income tax plus 350 but this amount should not exceed the basic standard deduction i.e., $50,000. But if their income tax is more than 50,000 then they are eligible for the 50,000 deduction as the basic standard deduction.

2. True becasue dependent may deduct 1100 or total income tax plus 350 but this amount cannot exceed the amount of basic standard deduction i.e., 50,000.

3. False becasue even dependent are eligible for the basic standard deduction of 1100 or the income tax plus 350 but this amount should not exceed the amount of basic standard deduction i.e., 50,000.