The first 5 questions are designed to measure key competencies related to figuring the allowable portion of standard deductions to U.S. income. They also encourage use of your research tools. Read each scenario carefully and use your reference materials (VITA/TCE Puerto Rico Resource Guide and Publication 1321) to answer the questions. Round all fractions to four decimal places.

1.Isabela was a resident of Puerto Rico during 2020. She is single and under 65 years of age. She works as a U.S. government employee and her salary was $34,000. She also received income of $6,000 from a part-time job in Puerto Rico not subject to U.S. tax. What is the standard deduction that Isabela can claim?

a. $10,540

B. $10,890

c. 12,200

d. $14,050

2. German and Elena were residents of Puerto Rico in 2020. They are age 72 and file a joint return. German is retired from the U.S. Federal Reserve Bank and Elena is retired from the U.S. government. Their retirement income were $28,000 and $42,000, respectively. What is German and Elenas standard deduction?

a. $12,600

b. $18,650

c. $27,400

d. $28,000

3. Marco is 40 years old, Head of Household, and a resident of Puerto Rico during 2020. Marco has a son who is his dependent. He informed you that he received the following sources of income: $16,000 for a job he performed in the state of Florida; $24,000 received from the federal government for services performed in Puerto Rico. He also received $10,000 from a part-time job in Puerto Rico that is exempt from federal income tax. What is Marcos standard deduction?

a. $12,400

b. $12,920

c. $20,000

d. $20,300

4. Sebastian is a bona fide resident of Puerto Rico, retired from a local bank, who received Social Security benefits. Does Sebastian have U.S. source income?

a. Yes, he has income from U.S. source

B. No, he does not have U.S. source income

5. Carolina is single with three children under 16 years old and files a Form 1040- PR to claim the additional child tax credit. Which filing status is not available for Carolina on Form 1040-PR?

a. Single

b. Head of house house

c. Married filing jointly

d. Married filing separately