Question

1. An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,350.

1. True

   False

1. Andres and Lakeisha are married and file jointly. Andres is 72 years old and in good health. Lakeisha is 62 years old and blind. What amount of standard deduction can Andres and Lakeisha claim in 2019?

   		$27,700.
   		$25,700.
   		$27,000.
   		$25,850.
   		None of the choices are correct.

1. Angelena files as a head of household. In 2019, she reported $53,450 of taxable income, including a $10,000 qualified dividend. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the Tax rate schedules, long-term capital gains tax brackets.)

   		$5,042
   		$4,937
   		$6,437
   		$6,137

1. Assuming the kiddie tax applies, what amount of a child's income is subject to the kiddie tax?

   		The net unearned income
   		Taxable income less the standard deduction
   		All of the unearned income
   		All of the child's income

Answer 1

An individual who is eligible to be claimed as a dependent on another's return and has $1,000 of earned income may claim a standard deduction of $1,350.

True: If a person is eligible to be claimed as dependent by another tax payer then the standard deduction is limited to greater of (i) $1,100 or (ii) your earned income plus $350( but the total can't be more than the basic standard deduction for your filing status.

Andres and Lakeisha are married and file jointly. Andres is 72 years old and in good health. Lakeisha is 62 yeas old and blind. What amount of standard deduction can Andres and Lakeisha claim in 2019.

$27,000. Standard deduction for married filing jointly is $24,400. Additional deduction is allowed in case if age is 65 0r above, or blind. in this case its $2,600. Thus total deduction is $24,400 + $2,600 = $27,000 132+4680+

Angelena files as a head of household. In 2019 she reported $53,450 of taxable income, including a $10,000 qualified dividend. What is her gross tax liability, rounded to the nearest whole dollar amount?

$4,937. The qualified dividend is taxed at capital gain rates, which are lower. for 2019 no tax on qualified dividend is to be paid as long as dividend amount is equal to or less than $38,600. And for the rest of income they will be taxed at ordinary rates(i.e $29,599 is taxed at 12% and $13,850 is taxed at 10%)

Assuming that Kiddie tax applies, what amount of a child income is subject to the kiddie tax:

The net unearned income. Under the kiddie tax rule a portion of child net unearned income can be taxed at the federal income tax rates.