Canfield Is Single,70 Years Old,and Has No Dependents

question 16

Multiple Choice

Canfield is single,70 years old,and has no dependents.Canfield will not have to file a tax return in 2013 if:
I.his gross income does not exceed $11,500.
II.his only income is $4,000 of self-employment income.

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Tax Law

Legislation and regulations governing how taxes are assessed, collected, and managed by governmental authorities.

Deductibility

The eligibility of an expense to be subtracted from gross income to reduce taxable income.

Pension Plans

Financial arrangements designed to provide individuals with an income during retirement, funded by either the employer, the employee, or both.

Income Tax Purposes

The specific calculations and methods used to determine taxable income and tax liabilities according to the regulations set by tax authorities.