Final answer:
Raoul's gross income for 2019 is the taxable interest income of $725 from his bank savings account. Tax-exempt municipal bond interest is not included in gross income, and he likely does not need to file a tax return unless specific conditions apply due to his status as a dependent.
Step-by-step explanation:
Raoul is a 71-year-old widow who is dependent on his son and has received interest income from different sources. Determining his gross income and whether he needs to file a tax return involves analyzing his sources of income. Interest income from a bank savings account is considered taxable income, whereas interest from tax-exempt municipal bonds is not. Therefore, Raoul's gross income for 2019 only includes the taxable interest income of $725 from his bank savings account.
The IRS sets income thresholds for when a person must file a tax return, which can vary based on age and filing status. Since Raoul is over 65 and his gross income is below the standard deduction for a single filer who is not a dependent of another taxpayer, in most circumstances, he would not be required to file a tax return. However, Raoul's status as a dependent could affect the requirement to file, and if he had federal or state tax withholding from any income or is eligible for certain credits, he may want to file to receive a refund. As a dependent, different rules may apply, and it’s recommended to consult tax guidelines or a professional.