Provide an Appropriate Response

question 139

Essay

Provide an appropriate response.
-IRS guidelines state that a married person under 65 years of age who can be claimed as a
dependent on another person's tax return must file a return if
(i)unearned income was over $750; or
(ii)earned income was over $3925; or
(iii)total of earned and unearned income was at least $5 and your spouse files a separate
return and itemizes deductions; or
(iv)total of earned and unearned income was more than the greater of
a)$750; or
b)earned income (up to $3675)plus $250.
Julia is 45 years old and can be claimed as a dependent by her father. She had earned
income of $3800 and unearned income of $200. Julia's husband Bret files a separate return
but does not itemize deductions. Must Julia file a return? Explain.

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Definitions:

Adjustable-Rate Mortgage

A mortgage loan with an interest rate that can fluctuate over time based on changes in a corresponding financial index that's attached to the loan.

Government Backing

Support or endorsement provided by a government, which can include financial guarantees, subsidies, or other forms of assistance.

Ordinary Course

Actions and transactions that are routine or normal for a particular business or industry, typically excluding extraordinary or unusual activities.

Security Interest

A legal claim or lien on collateral that gives a lender the right to repossession if the borrower defaults on the agreement.