8) For the following taxpayers indicate whether the taxpayer should file a tax return and why....

8) For the following taxpayers indicate whether the taxpayer should file a tax return and why. a. Robert earned $50,000 this year as a staff accountant. His estimated tax liability is $4,500, and he expects to receive a $500 tax refund. b. Amy earned $4,000 this year working part-time. She will have no federal tax liability and has not made any federal tax payments. c. Ty earned $2,500 this summer and had $200 of federal taxes withheld from his paycheck. He will have no federal tax liability this year. d. Startup Corporation had a $50,000 loss this year. e. The Walker Family Trust earned $500 of gross income this year.

Solutions

Expert Solution

a) Robert , Earns $ 50,000 having Tax liability $ 4,500 and also expects refund

He has to file a tax return as his earnings id more than the standard deduction $ 12,000 for 2018.

b,.) Amy earned $ 4,000

She is not liable file tax as she doesn't have any federal tax liability and neither any refund to be claimed and her income is less than standard deduction.

c.) Ty earned $ 2500 and $ 200 withheld from his paycheck.

He will have to file tax return, although his earnings are less than standard deduction but in order to claim the refund $ 200 he will have to file tax return as IRS doesn't automatically issue refunds without tax return being filed

d.) A Start up corporation with a loss.

It must file a tax return irrespective of whether it made a profit or loss. Being a start up there may be expenses that need to be written off as business expenses. Moreover tax codes allows you to carry forward business losses to future year to offset income in those years.

e) The WALKER Family trust

No the trust need not file Tax return.

Trust must file income tax return id its income is more than $ 600 in a year. Here its income is $500 only.

ekkarill92 answered 1 year ago

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