Question

Standard Deduction. (obj. 3) Compare each taxpayer's 2016 total standard deduction.

a. Bryce, age 20, is a full-time student. His parents claim him as a dependent. bryce has interest income of $320 and wages from a part-time job of $3,800.

b. Same as in part a., except that bryce's wages are $6,500.

c. Heather, age 66, is married and files a seperate return. Her husband also uses the standard deduction on his return.

d. Julier, age 19, is blind and claimed as a dependat by her parents. Her only income is $5,200 of taxable interest.

Answer 1

a. The standard deduction is:

Step 1: Maximum of 1050 of earned income plus 350= maxium of 1050 or 4150(3800+350) = 4150

Step 2: Minimum of amount in step 1 (4150) of 6300 for filing single, which is= 4150

Hence standard deduction for bryce= 4150

b.

Step 1: Maximum of 1050 of earned income plus 350= maxium of 1050 or 6850(6500+350) = 6850

Step 2: Minimum of amount in step 1 (6850) of 6300 for filing single, which is= 6300

Hence standard deduction for bryce= 6300

c. For filing seperate return stadard deduction= 6300,

since the age of filer is more than 65, amount of additional stadard deduction = 1250

Total standard deduction = 6300+1250= 7550

d. Since she has no earned income her stadard deduction= 1050 and as she is bling her additional stadard deduction= 1550

Total stadard deduction= 1050+1550= 2600