Question

Compute the 2019 standard deduction for the following taxpayers.a. Ellie is 15 and claimed as a dependent by her parents. She reports $1,700 in dividends income and $1,880 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 $12,170. $c. Shonda is age 68 and single. She is claimed by her daughter as a dependent. Her earned income is $150, and her interest income is $425. $d. Frazier, age 58, is married but is filing a separate return. His wife Emma itemizes her deductions.

Answer 1

Solution:

a. Ellie is limited to the amount of 2230 (the sum of income earned for the year plus 350) when she files her own tax return.

= $1,880 + 350

Ellie is limited to the great of 2230.

b. The additional standard deduction of 1250 or 1550 is provided to people who are 65 and over or blind in 2017 based on the filing status.  

The standard allowance of ruby and Woody shall be 12600 (commonly married) plus 1250 additional allowances of ruby aged sixty-five years old and 1250 additional allowances for Woody aged sixty-five.

= $12,170 + 1250 + 1250 = 14,670

c. Shonda is limited to more than 500 (the total amount of the $150 income earned for the year plus $350) when filing her personal tax return.  

This limitation only extends to the "simple" deduction norm.  

The regular extra deduction number on your refund is provided to a person who is 65 or older or blind.

Therefore, Shonda's standard deduction is 2050 (500+1550).

d. Frazier can not use the standard deduction and should therefore specificity as his wife itemizes.