Final answer:
Sam and Lana, both aged 67 with a combined gross income of $30,000, have a taxable income of $1,300 after the standard deductions. They are not required to file a return unless specific conditions apply.
Step-by-step explanation:
The question pertains to determining the taxable income and whether a tax return is required for Sam and Lana, a married couple both aged 67 with a combined gross income of $30,000. To calculate their taxable income, we must consider the standard deduction and personal exemptions for which they are eligible. Given their age, they would each qualify for an additional standard deduction on top of the regular standard deduction for married couples filing jointly. However, the personal exemption has been eliminated after the Tax Cuts and Jobs Act of 2017.
For the tax year 2023, the standard deduction for married couples filing jointly is $25,900 plus an additional standard deduction for each individual aged 65 or older, which is $1,400. Consequently, Sam and Lana's total standard deduction would be $25,900 + ($1,400 * 2) = $28,700. Hence, their taxable income would be $30,000 - $28,700 = $1,300. Since the taxable income is below the lowest tax bracket, their federal income tax liability would be $0.
In regards to requirements for filing a tax return, the IRS stipulates that individuals aged 65 or older with a gross income below the standard deduction ($28,700 for Sam and Lana) are not typically required to file a tax return unless they have other specific filing criteria such as self-employment income. Therefore, Sam and Lana are not required to file a return unless other conditions apply that mandate them to do so.
B. Their taxable income is $1,300. They are not required to file a return.