A taxpayer who is age 65 or over or blind qualifies for an additional standard deduction with the amount depending on filing status (see amounts in Exhibit 9.5). Two additional standard deductions are allowed for a taxpayer who is age 65 or over and blind. The additional standard deduction provisions also apply for a qualifying spouse who is age 65 or over or blind, but a taxpayer may not claim an additional standard deduction for a dependent. Amount of Each Additional Standard Deduction The standard deduction is the sum of two components: the basic standard deduction and the additional standard deduction. * Exhibit 9.4 lists the basic standard deduction allowed for taxpayers in each filing status. The standard deduction amounts are subject to adjustment for inflation each year. Most taxpayers are allowed to use the full standard deduction. However, certain taxpayers are not allowed to claim any standard deduction, and the standard deduction is limited for others. These provisions are discussed later in the chapter. Basic Standard Deduction Amounts Problem 9-21 (LO. 1, 2, 3, 4, 5) Morgan (age 45 ) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18 ), and Jeroid (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a French citizen) Ilves in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used for vacations. She has $8,200 in itemized deductions. Ignore any credits for which she may qualify. Click here to access the standard deduction table to use if required. a. Morgan's taxable income is \$ b. Using the Tax Rate Schedules (click here), tax liability for Morgan is \$ for 2021 . c. Compute Morgan's dependent tax credit. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Schedule & jointly & Qualifying wido & & Married fi & separatel & Schedule Y-2 & \\ \hline \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} & \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} \\ \hline 0 & $19,900 & .........10\% & $ & 0 & $9,950 & .........10\% & s \\ \hline 19,900 & 81,050 & \$ 1,990.00+12% & 19,900 & 9,950 & 40,525 & \$ 995.00+12% & 9,950 \\ \hline 81,050 & 172,750 & 9,328.00+22% & 81,050 & 40,525 & 86,375 & 4,664.00+22% & 40,525 \\ \hline 172,750 & 329,850 & 29,502.00+24% & 172,750 & 86,375 & 164,925 & 14,751.00+24% & 86,375 \\ \hline 329,850 & 418,850 & 67,206.00+32% & 329,850 & 164,925 & 209,425 & 33,603.00+32% & 164,925 \\ \hline 418,850 & 628,300 & 95,686.00+35% & 418,850 & 209,425 & 314,150 & 47,843.00+35% & 209,425 \\ \hline 628,300 & (......... & 168,993,50+37% & 628,300 & 314,150 & ......... & 84,496.75+37% & 314,150 \\ \hline \end{tabular} 2021 Tax Rate Schedules \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Single-Schedule X } & \multicolumn{4}{|c|}{ Head of household-Schedule Z } \\ \hline \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{c} of the \\ amount \\ over- \end{tabular} & \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} \\ \hline 0 & $9,950 & 10% & s & 0 & $14,200 & .........10\% & $ \\ \hline 9,950 & 40,525 & 995.00+12% & 9,950 & 14,200 & 54,200 & $1,420.00+12% & 14,200 \\ \hline 40,525 & 86,375 & 4,664.00+22% & 40,525 & 54,200 & 86,350 & 6,220.00+22% & 54,200 \\ \hline 86,375 & 164,925 & 14,751.00+24% & 86,375 & 86,350 & 164,900 & 13,293.00+24% & 86,350 \\ \hline 164,925 & 209,425 & 33,603.00+32% & 164,925 & 164,900 & 209,400 & 32,145.00+32% & 164,900 \\ \hline 209,425 & 523,600 & 47,843.00+35% & 209,425 & 209,400 & 523,600 & 46,385.00+35% & 209,400 \\ \hline$23,600 & .......... & 157,804.25+37% & 523,600 & 523,600 & .......... & 156,355.00+37% & 523,600 \\ \hline \end{tabular}