Question

1. David is 59 years old and he is a retired police officer. He is a single dad, living with his 14 years old son, Nicholas. David supports Nicholas everything and he claims Nicholas as a dependent. Calculate standard deduction of David

Answer 1

Answer :Standard deduction od David = $12,400

Explanation for the answer :

The standard deduction reduces your taxable income. In 2019 the standard deduction is $12,200 for single filers and married filers filing separately, $24,400 for married filers filing jointly and $18,350 for heads of household.

In 2020 the standard deduction is $12,400 for single filers and married filers filing separately, $24,800 for married filers filing jointly and $18,650 for heads of household.

• The standard deduction is $1,300 higher for those who are over 65 or blind; it’s $1,650 higher if also unmarried and not a surviving spouse.
• If someone can claim you as a dependent, you get a smaller standard deduction.

How the standard deduction works

• Even if you have no other qualifying deductions or tax credits, the IRS lets you take the standard deduction on a no-questions-asked basis. The standard deduction reduces the amount of income you have to pay taxes on.
• You can either take the standard deduction or itemize on your tax return — you can’t do both. Itemized deductions are basically expenses allowed by the IRS that can decrease your taxable income.
• Taking the standard deduction means you can’t deduct home mortgage interest or take the many other popular tax deductions — medical expenses or charitable donations, for example. (But if you itemize, you should hang onto records supporting your deductions in case the IRS decides to audit you.)