Determine the amount of the standard deduction allowed for 2015 in the following

Question

Determine the amount of the standard deduction allowed for 2015 in the following independent situations. In each case, assume that the taxpayer is claimed as another person's dependent.
a. curtis, age 18, has income as follows: $700 interest from a certificate of deposit and $6,100 from repairing cars.
b. Mattie, age 18, has income as follows: $600 cash dividends from a stock investment and $4,700 rom handling a paper route.
c. Mel, age 16, has income as follows: $675 interest on a bank savings account and $800 for painting a neighbor's fence.
d. Lucy, age 15, has income as follows: $400 cash dividends from a stock investment and $500 from grooming pets.
e. Sarah, age 67 and a widow, has income as follows: $500 from a bank savings account and $3,200 from babysitting.

Explanation / Answer

a. $6,450

Curtis's standard deduction is limited to the greater of $1,000 or the sum of his earned income for the year plus $350: $6,450 = $6,100 (earned income) + $350.

b. $5,050

Mattie's standard deduction is limited to the greater of $1,000 or the sum of his earned income for the year plus $350: $5,050 = $4700 (earned income) + $350.

c. $1,150

Mel's standard deduction is limited to the greater of $1,000 or the sum of his earned income for the year plus $350: $1,150 = $800 (earned income) + $350.

d. $1,000

$1,000. Lucy's standard deduction is limited to the greater of $1,000 or the sum of her earned income for the year plus $350: $850 = $500 (earned income) + $350.

e.$3,550

$3,550. Sarah's standard deduction is limited to the greater of $1,000 or the sum of his earned income for the year plus $350: $3550 = $3200 (earned income) + $350.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.