Subject Tax Accounting. For the following taxpayers indicate wheter the taxpayer
ID: 2333627 • Letter: S
Question
Subject Tax Accounting.
For the following taxpayers indicate wheter the taxpayer should file a tax return and why
a. Robert earned $50.000 this year as a staff accountant. His estimated tax liability is $ 4,500 and he expects to receive a $500 tax refund.
b- Amy earned $4000 this year working part-time. She will have no federal tax liability and has not made any federal tax payments.
c- Ty earned $ 2,500 this summer and had $200 of federal taxes withheld from his paycheck. He will have no federal tax liability this year.
d- Starup Corporation had a $50,000 loss this year.
e- The walker family Trust earned $500 of gross income this year.
Explanation / Answer
Answer to Questions:
1) Robert is required to file a tax return because his gross income exceeds the applicable gross income threshold.
2) Amy is not required to file a tax return since her income is below the applicable gross income threshold.
3) Ty is not required to file a tax return because his gross income is below the applicable gross income threshold. However, he is required to file a tax return to receive a refund of $ 200 of taxes withheld.
4) Startup Corporation is required to file an income tax return as all corporations are required to file an annual tax return.
5) The Walker family trust is not required to file a tax return this year since the incoem of the trust is below the applicable threshold.