Keith and Nicole Are Married Filing Jointly, with Two Daughters

question 28

Essay

Keith and Nicole are married filing jointly, with two daughters who qualify as dependents. Their gross income for 2020 is $25,500. Are they required to file a tax return? How do you know this without memorizing the gross income thresholds? In 2020, the standard deduction for taxpayers filing a joint return is $24,800.

---

Definitions:

Administrative Costs

Expenses related to the general operations of a business, such as office supplies, management salaries, and utilities, which do not directly tie to specific product or service production.

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials, direct labor, and certain overhead expenses.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from a company's core business operations.

Export Fees

Charges associated with sending goods or services to another country, which can include customs duties, taxes, and transportation costs.