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 TAX RETURN,MARGIE IS LIMITED TO THE GREATER OF $1050 OR $1750(THE SUM OF EARNED INCOME PLUS $350)

(b) $15100, A TAXPAYER WHO IS AGE 65 OR ABOVE OR BLIND IN 2015 WILL BE QUALIFIED 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 ADDITIONAL $1250 EACH BECAUSE BOTH ARE ABOVE 65

(c)$2600,WHEN FILING HER BOWN TAX RETURN,SHONDA IS LIMITED TO THE GREATER OF $1050 OR $850(SUM OF EARNED INCOME PLUS $350).AN ADDITIONAL STANDARD IS ALSO ALLOWED FOR AGE 65 OR ABOVE.THEREFORE STANDARD DEDUCTION IS $2600($1050+$1550)

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