True or false

Cate, age 68 claims head of household filing status. If she has itemized deductions $20,950 for 2023, she should claim the standard deduction.

True or false

Nathan, age 16 is claimed a dependent by his parents. During 2023 he earned $950 at a car wash. Nathans standard deduction is $1650. $1250+$400

True or false

Macy, who is 18 is claimed as a dependent by her mother. During 2023, Macy earned $1200 in interest income on a savings account. Her standard deduction is $1650. $1250+$400

True or false

Nicki, age 16 is claimed as a dependent by her parents. During 2023, she earned $5600 working at a supermarket. Her standard deduction is $6000. $5600 earned income + $400

True or false

In 2023, a kid (minor) who has unearned income of $2500 or less cannot be subject to kiddie tax.

True or false

Matthew is a cash basis attorney. This year he performed in the connection with the formation of a corporation and received stock with a value of $4,000 for his services. By the end of the year, the value of the stock had decreased to $2,000. He continued to hold the stock. Matthew must recognize $4,000 of gross income from the stock for the current year.

Abby was suffering from a viral infection that caused her to miss work for 90 days. During the first 30 days of her absence, she received her regular salary of $8,000 from her employer. For the next 60 days, she received $12,000 under an accident and health insurance policy purchased by her employer. The premiums on the health insurance policy were excluded from her gross income. During the last 30 days, Abby received $6,000 on an income replacement policy she had purchased. Of the $26,000 she received, Abby must include in gross income: