Final answer:
The question concerns the impact of additional standard deductions for age and blindness on the filing requirements for income taxes. These deductions raise the minimum income threshold for filing a tax return. Calculating taxable income involves adjusting gross income for deductions and exemptions, and tax rates increase with higher income brackets.
Step-by-step explanation:
The subject of the question is the determination of filing requirements based on gross income received for tax purposes, considering additional standard deductions for factors such as age and blindness. The calculation of taxable income can be viewed as follows:
taxable income = adjusted gross income - (deductions and exemptions).
For individuals who are either aged or blind, the Internal Revenue Service (IRS) provides additional standard deductions which increase the basic standard deduction amount allowable. This effectively raises the threshold for the minimum amount of income at which a taxpayer is required to file a tax return. In the context of the U.S. income tax code, as an individual's income enters a new bracket, the marginal tax rate increases correspondingly. For example, in the 2020 tax brackets, various rates apply to specific ranges of taxable income:
- 10% of all taxable income from $0 to $19,750
- 12% of all income from $19,751 to $80,250
- 22% of all taxable income from $80,251 to $171,050, etc.
This progressive tax structure means taxpayers pay higher rates on income as they move into higher brackets.