Return requirements dependents with unearned income

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Return Requirements: Dependents with Unearned Income Yes. Since Charles is a dependent and has unearned income exceeding $950. 26. Return Requirements: Refunds and Credits Even though the income received may be less than that required to fi le a return, a taxpayer may wish to fi le 27. in order to receive a refund of any income taxes withheld or, as discussed in Chapter 9, to obtain the earned income credit. Return Requirements: Taxable Income Any taxable income requires the fi ling of a return. In addition, where an individual has $400 or more of 28. self-employment income, a tax return must be fi led in order to determine the self-employment tax. Tax Tables v. Tax Rate Schedules The tax tables divide taxable income into $25 and $50 intervals. The taxpayer fi nds the interval containing 29. his or her taxable income and the table gives the tax liability. With the tax rate schedules, the taxpayer must fi nd the line containing taxable income and then must go through a computation to arrive at the tax liability. In effect, the tax tables take the midpoint of each interval and determine the tax liability from the tax rate schedules, thus saving the taxpayer the computation procedure. Use of the tax tables is required on taxable income under $100,000. Self-Employment Tax Limit Self-employment income subject to tax is limited to the earnings base ($106,800 for 2009) less any wages 30. and tips subject to the Social Security tax. ANSWERS TO PROBLEMS—CHAPTER 3 Topical List of Problems Taxable Income Computation: Married Taxpayers (¶3001) 31. Taxable Income Computation: Single Taxpayer (¶3001) 32. Itemized Deductions v. Standard Deduction (¶3035) 33. Phaseout of Itemized Deductions (¶3035) 34. Taxable Income: Personal Exemptions and Standard Deduction (¶3001) 35. Phaseout of Itemized Deductions (¶3035) 36. Taxable Income: Standard Deduction—Dependents (¶3365) 37. Taxable Income: Standard Deduction—Dependents (¶3365) 38. Taxable Income: Standard Deduction—Dependents (¶3365) 39. Additional Standard Deduction (¶3035) 40. Support Test: Dependents and Full-Time Students (¶3225) 41. Support Test: Full-Time Students (¶3225) 42. Multiple Support Agreement (¶3225) 43. Post-1984 Divorce Dependency (¶3225) 44. Phaseout of Exemptions (¶3227) 45. Filing Status: Married Persons—Joint and Separate Returns (¶3301 and ¶3315) 46. Filing Status: Head of Household and Surviving Spouse (¶3345 and ¶3355) 47. Filing Status: Surviving Spouse (¶3355) 48.
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39 Instructor’s Manual © 2009 CCH. All Rights Reserved. Chapter 3 Filing Status (¶3301 and ¶3345) 49. Return Requirements (¶3375) 50. Tax Rate Schedules v. Tax Tables (¶3385 and ¶3395) 51. Income Tax Computation: Single Person (¶3395) 52. Income Tax Computation: Various Filing Statuses (¶3395) 53. Self-Employment Tax Computation (¶3405) 54. Income and Self-Employment Tax Computation (¶3395 and ¶3405) 55. Multiple Choice—Filing Status (¶3315) 56. Multiple Choice—Support Requirements (¶3225) 57. Multiple Choice—Head of Household Requirements (¶3345) 58.
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