Answer to Question #106564 in Finance for Lidia

Question

In this activity you will determine if the person in each of the 10 following scenarios has to file or should file a tax return. Be prepared to explain your reasoning!

Answer 1

The following table (for 2017) on the minimum income to be declared applies to most working Americans:

If you work for yourself, or, say, received income from dividends, gratuities, royalties and the like, and it exceeds $ 400 (for the whole year), then you are also required to file a tax return.

In the USA, even the applicable tax rates depend on the status of a resident taxpayer, there are four categories of resident taxpayers:

1.) married persons who file a joint tax return;

2.) persons containing dependent family members;

3.) unmarried individuals

4.) married individuals submitting separate tax returns.