Question

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. $

Answer 1

(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