Question

Which of ollow indi tax return? Should any of these individuals file a return even if filing is no t required? Why or why not?

a. Patricia, age 19, is a self-employed single individual with gross income of $5,200 from an unincorporated business. Business expenses amot1nted to $4,900.
b. Mike is single and is 67 years old. His gross income from wages was $10,800.
c. Ronald is a dependent child under age 19 who received $6,800 in wages from a part-time job.
d. Sam is married and files a joint return with his spouse, Lana. Both Sam and Lana are 67 years old. Their combined gross income was $24,250. e . Quinn, age 20, is a full-time college student who is claimed as a dependent by his parents. Quinn reports taxable interest and dividends of $2,500.

Answer 1

Individuals must evaluate their income, age, and filing status to determine the need to file an income tax return. Some individuals might not be required to file but doing so could be advantageous. Filing can lead to potential refunds and establishes an income record.

Step-by-step explanation:

The individuals in question are considering whether they need to file an income tax return, which is contingent upon various factors such as income level, age, filing status, and dependency status as guided by IRS regulations. Each scenario presents a unique set of circumstances:

• Patricia, as a self-employed individual, should file a return since her gross income exceeds $400.
• Mike, being over 65, may not be required to file if his income is below the filing threshold for his age group.
• Ronald, as a dependent, might not need to file, depending on whether his income exceeds the standard deduction for a dependent.
• Sam and Lana's combined income is above the threshold for married filing jointly, so they must file.
• Quinn, as a dependent with unearned income over $1,100, is required to file a return.

Filing a tax return when it's not required can be beneficial if one has had federal income tax withheld or is eligible for refundable credits. Additionally, filing can establish a record of income for future Social Security or loan qualification purposes.