Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Determine the amount of the standard deduction allowed for 2021 in the following independent situations. In each case, assume that the taxpayer is claimed as another person's dependent. Amount of the Standard Deduction

a. Curtis, age 18, has income as follows: $700 interest from a certificate of deposit and $12,600 from repairing cars.
b. Mattie, age 18, has income as follows: $600 cash dividends from investing in stock and $4,700 from working as a lifeguard at a local pool.
c. Jason, age 16, has income as follows: $675 interest on a bank savings account and $800 for painting a neighbor's fence.
d. Ayla, 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.

Sagot :

anthougo

The determination of the amount of the standard deduction allowed for 2021 for each independent case is as follows:

a. $12,550.

Curtis earned $12,600 from car repairs in addition to the $700 from CD interest, which totals $13,100.  But the amount allowed cannot exceed the standard deduction available in 2021 for single taxpayers.

b. $5,300.

Mattie would be allowed $5,300 ($600 + $4,700) because the amount allowed cannot exceed the earnings.  

c. $1,475.

Jason earned $800 plus $675 interest from his savings account.

d. $900.

Ayla earned $500 plus $400 cash dividends.

e. $3,700.

Sarah received $500 from her savings account and earned $3,200 from babysitting.

What is standard deduction?

According to the IRS, the standard deduction is the amount that taxpayers who do not itemize their deductions may subtract from their income to arrive at the taxable income. Every taxpayer is given the opportunity to choose to itemize their deductions or the standard deduction.

Thus, for each taxpayer above, the standard deduction for 2021 is compared to the income received, and the lesser amount is chosen.

Learn more about the standard deductions at https://brainly.com/question/13757943

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.