Tax Drill - Computing the Standard Deduction Compute the 2017 standard deduction for the following taxpayers....

Tax Drill - Computing the Standard Deduction

Compute the 2017 standard deduction for the following taxpayers. If an amount is zero, enter "0".

Click here to access the standard deduction table to use.

a.	Margie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part-time job.	$
b.	Ruby and Woody are married and file a joint tax return. Ruby is age 66 and Woody is 69. Their taxable retirement income is $10,000.	$
c.	Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $500 and her interest income is $125.	$
d.	Frazier, age 55, is married but is filing a separate return. His wife itemizes her deductions.	$

Solutions

Expert Solution

(a) $1750($1400+$350).WHEN FILING HER OWN INCOME TAX RETURN,MARGIE IS LIMITED TO THE GREATER OF $1050 OR $1750

(b)$15100.A TAXPAYER WHO IS AGE 65 OR OVER OR BLIND IN 2017 QUALIFIES FOR AN ADDITIONAL STANDARD DEDUCTION OF $1250,OR $1550,DEPENDING ON FILING STATUS.RUBY AND WOODY STANDARD DEDUCTION IS THE AMOUNT FOR MFJ $12600 PLUS THE ADDITIONAL $1250 FOR RUBY BEING AGE 65 OR OLDERAND ANOTHER $1250 FOR WOODY BEING AGE MORE THAN 65

(c)$2600;WHEN FILING HER OWN TAX RETURN,SHONDA IS LIMITED TO THE GREATER OF $1050 OR $850($500+$350).THE LIMITATION APPLIES ONLY TO THE BASIC STANDARD DEDUCTION. A DEPENDENT WHO IS 65 OR ABOVE OR BLIND IS ALLOWED THE ADDITIONAL STANDARD DEDUCTION ON HIS OR HER OWN RETURN.THEREFORE SHONDA STANDARD DEDUCTION IS $2600($1050+$1550)

(d)$0,FRAZIER IS INELIGIBLE TO USE THE STANDARD DEDUCTION AND THEREFORE MUST ITEMIZE BECAUSE HE IS MARRIED FILING A SEPARTE RETURN WHEN HIS SPOUSE ITEMIZES DEDUCTIONS

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Compute the 2019 standard deduction for the following taxpayers.

Compute the 2019 standard deduction for the following taxpayers. a. Ellie is 15 and claimed as a dependent by her parents. She reports $800 in dividends income and $1,400 in wages from a part-time job. b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000. c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income...

Compute the 2017 standard deduction for the following taxpayers. If an amount is zero, enter "0"....

Compute the 2017 standard deduction for the following taxpayers. If an amount is zero, enter "0". Click here to access the standard deduction table to use. a. Margie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part-time job. $ b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $10,000. $...

Determine the amount of the standard deduction for each of the following taxpayers for tax year...

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2019: Christina, who is single. Adrian and Carol, who are filing a joint return. Their son is blind. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents. Rodolfo, who is over 65 and is single. Bernard, who is a...

Determine the amount of the standard deduction for each of the following taxpayers for tax year...

Determine the amount of the standard deduction for each of the following taxpayers for tax year 2017: Christina, who is single. Adrian and Carol, who are filing a joint return. Their son is blind. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. Karen, who earned $1,100 working a part-time job. She can be claimed as a dependent by her parents. Rodolfo, who is over 65 and is single. Bernard, who is a...

determine the amount of the standard deduction for each of the following taxpayers for tax year...

determine the amount of the standard deduction for each of the following taxpayers for tax year 2017 a. Christina, who is single. b. A drain and Carol, who are filling a joint return. their son is blind. c. Peter and Elizabeth, who are married and file separate tax returns. Elizabeth will itemize her deductions. d. Karen, who earned $1100 working a part-time job. she can be claimed as a dependent by her parents. e. Rodolfo, who is over65 and is...

Determine whether the following taxpayers are eligible for the QBI deduction and the deduction amount (if...

Determine whether the following taxpayers are eligible for the QBI deduction and the deduction amount (if any). Cathy is married and files a joint return with her spouse. Cathy operates a small family restaurant as a sole proprietor. She pays wages of $70,000 and the QBI from the restaurant is $100,000. Cathy’s spouse has wages of $250,000 and their joint taxable income is $364,000. Is Cathy eligible for QBI deduction? Answer yes or no If eligible, how much is the...

1) Taxpayers are not allowed to deduct tax preparation fees as an itemized deduction. Group of...

1) Taxpayers are not allowed to deduct tax preparation fees as an itemized deduction. Group of answer choices True False 2) Which of the following is a true statement? Group of answer choices a. The deduction for investment interest expense is not subject to limitation. b. Taxpayers may only deduct interest on up to $1,500,000 of home acquisition indebtedness. c. Taxpayers may deduct interest on up to $1,000,000 of home-equity debt. d. A taxpayer who incurs acquisition indebtedness in 2018...

The December 2017 tax reform bill significantly increased the standard deduction and eliminated an entire class...

The December 2017 tax reform bill significantly increased the standard deduction and eliminated an entire class of itemized deductions (the Miscellaneous Deductions including tax preparation costs, investment advisory fees, gambling losses, personal casualty losses, investment expenses, and work-related expenses of W2 employees). The tax reform law also limited the mortgage interest, real estate, property, sales, and state income tax deductions. Do each of the following: Select one of the eliminated deductions and explain the economic changes that will result from...

1. Which of the statements regarding the standard deduction, if any, is correct? a. Some taxpayers...

1. Which of the statements regarding the standard deduction, if any, is correct? a. Some taxpayers may qualify for two types of standard deductions. b. The standard deduction is not available to taxpayers who are dependents. c. The standard deduction may be taken as a for AGI deduction. d. The basic standard deduction is indexed for inflation but the additional standard deduction is not. e. None of these. 2. Which of the following statements relating to the standard deduction, if...

What standard deduction amount would the taxpayers in each scenario be entitled to? a. A single...

What standard deduction amount would the taxpayers in each scenario be entitled to? a. A single taxpayer, not head of household, with AGI of $23,493 and one dependent. b. A married couple filing jointly with AGI of $39,945 and two dependents. c. A taxpayer filing married filing separately with AGI of $68,996 and one dependent. d. A qualifying widow, age 66, with AGI of $49,240 and one dependent. e. A head of household with AGI of $14,392 and two dependents....

Subjects