For the Following Taxpayers, Indicate Whether the Taxpayer Should File

question 102

Essay

For the following taxpayers, indicate whether 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 $4,000 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. Startup Corporation had a $50,000 loss this year.
e. The Walker Family Trust earned $500 of gross income this year.

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Definitions:

Ovaries

Female reproductive organs in which ova or eggs are produced, along with the hormones estrogen and progesterone.

Ligaments

Strong fibrous connective tissues that connect bones to other bones, providing stability to joints.

Hormones

Chemical messengers secreted by endocrine glands into the blood, coordinating and regulating activities within the body.

Sex Cell

Also known as a gamete, it's a specialized cell involved in sexual reproduction, including sperm in males and eggs (ova) in females.