Publication 17: Chapter 1

1. You must file a federal income tax return if you are a citizen of the United States or are a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you:

Individuals in general

Dependents

Certain children under the age of 19 or full-time students

Self-employed or an Alien

All of thee above

If you are a citizen of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the categories mentioned (individuals in general, dependents, certain children under the age of 19 or full-time students, self-employed or an alien), then you must file a federal income tax return. This means that all of the categories mentioned in the options require you to file a tax return if you meet the criteria.

Explanation

If you are a citizen of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the categories mentioned (individuals in general, dependents, certain children under the age of 19 or full-time students, self-employed or an alien), then you must file a federal income tax return. This means that all of the categories mentioned in the options require you to file a tax return if you meet the criteria.

2. What depends on whether you are single or married and on your family situation. (Hint: Its determined on the last day of your tax year, which is December 31)

Filing Status

Child dependent care credit

Basis or Property

Interest income

The correct answer is Filing Status. Filing status refers to whether an individual is considered single, married, or the head of household for tax purposes. It determines the tax brackets, deductions, and credits that an individual is eligible for. The filing status is determined based on the individual's marital status and family situation as of the last day of the tax year, which is December 31st.

Explanation

The correct answer is Filing Status. Filing status refers to whether an individual is considered single, married, or the head of household for tax purposes. It determines the tax brackets, deductions, and credits that an individual is eligible for. The filing status is determined based on the individual's marital status and family situation as of the last day of the tax year, which is December 31st.

3. If you are 65 at the end of the year, you generally have a lower amount of gross income than other tax filers.

True

False

The statement is false because the amount of gross income is not determined by age. Gross income is the total income earned before any deductions or expenses are taken into account. It can vary for individuals of any age depending on their occupation, investments, and other sources of income. Therefore, being 65 at the end of the year does not necessarily mean having a lower amount of gross income compared to other tax filers.

Explanation

The statement is false because the amount of gross income is not determined by age. Gross income is the total income earned before any deductions or expenses are taken into account. It can vary for individuals of any age depending on their occupation, investments, and other sources of income. Therefore, being 65 at the end of the year does not necessarily mean having a lower amount of gross income compared to other tax filers.

4. What two things must be true in order for you to file a return for a decedent?

The decedent must have had a gross income above the filing threshold for that tax year.

The decedent's estate must be required to file a return.

The decedent must have had a gross income below the filing threshold for that tax year.

The decedent's estate must not file a return.

In order to file a return for a decedent, two things must be true. Firstly, the decedent must have had a gross income above the filing threshold for that tax year. Secondly, the decedent's estate must be required to file a return. These two conditions must be met to fulfill the criteria for filing a return for a decedent.

Explanation

In order to file a return for a decedent, two things must be true. Firstly, the decedent must have had a gross income above the filing threshold for that tax year. Secondly, the decedent's estate must be required to file a return. These two conditions must be met to fulfill the criteria for filing a return for a decedent.

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5. If you are a US citizen or resident, whether you must file a return depends on three factors:

1. Your gross income
2. Your filing status
3.

The age of an individual is one of the determining factors in whether they must file a tax return if they are a US citizen or resident. The Internal Revenue Service (IRS) has different income thresholds for different age groups, and individuals who meet these thresholds are required to file a tax return. The age factor helps to determine the tax filing requirements and eligibility for certain deductions and credits.

Explanation

The age of an individual is one of the determining factors in whether they must file a tax return if they are a US citizen or resident. The Internal Revenue Service (IRS) has different income thresholds for different age groups, and individuals who meet these thresholds are required to file a tax return. The age factor helps to determine the tax filing requirements and eligibility for certain deductions and credits.

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6. A dependent child is responsible for filing their own tax return unless they are unable to due to certain circumstances such as age,

True

False

A dependent child is responsible for filing their own tax return unless they are unable to due to certain circumstances such as age. This means that if the child meets the criteria for being a dependent and is of a certain age, they may not be required to file their own tax return. However, if they do not meet these criteria, they are responsible for filing their own tax return. Therefore, the statement "A dependent child is responsible for filing their own tax return unless they are unable to due to certain circumstances such as age" is true.

Explanation

A dependent child is responsible for filing their own tax return unless they are unable to due to certain circumstances such as age. This means that if the child meets the criteria for being a dependent and is of a certain age, they may not be required to file their own tax return. However, if they do not meet these criteria, they are responsible for filing their own tax return. Therefore, the statement "A dependent child is responsible for filing their own tax return unless they are unable to due to certain circumstances such as age" is true.

7. If your self employed, your gross income includes the amount on

The gross income for self-employed individuals includes the amounts reported on line 7 of Schedule C (form 1040) for Profit or Loss From Business, line 1 of Schedule C-EZ (form 1040) for Net Profit and Loss From Business, and line 11 of Schedule F (form 1040) for Profit or Loss From Farming. These lines on the respective forms represent the total income generated from the individual's business or farming activities, which is considered as gross income for self-employed individuals.

Explanation

The gross income for self-employed individuals includes the amounts reported on line 7 of Schedule C (form 1040) for Profit or Loss From Business, line 1 of Schedule C-EZ (form 1040) for Net Profit and Loss From Business, and line 11 of Schedule F (form 1040) for Profit or Loss From Farming. These lines on the respective forms represent the total income generated from the individual's business or farming activities, which is considered as gross income for self-employed individuals.

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