Consider the following facts for a taxpayer named Mike in 2021: Mike is unmarried He cannot...

 

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Consider the following facts for a taxpayer named Mike in 2021: Mike is unmarried He cannot be claimed as a dependent by anyone - - - He is 68 years old He earned $6,000 working at Walmart, which withheld $300 in federal income tax He received $9,000 in Social Security benefits He received $25,000 in life insurance proceeds upon the death of his brother He bought a used car for $22,000, financed with a 48-month loan at 6% interest Mike is not planning to file a tax return for 2021. A Questions: 1. Is Mike required to file a tax return for 2021? Why or why not? 2. What portion of his Social Security benefits is taxable? 3. How much of the interest on his car loan can Mike take as an itemized deduction? 4. Is there any other advice you would give Mike? Consider the following facts for a taxpayer named Mike in 2021: Mike is unmarried He cannot be claimed as a dependent by anyone - - - He is 68 years old He earned $6,000 working at Walmart, which withheld $300 in federal income tax He received $9,000 in Social Security benefits He received $25,000 in life insurance proceeds upon the death of his brother He bought a used car for $22,000, financed with a 48-month loan at 6% interest Mike is not planning to file a tax return for 2021. A Questions: 1. Is Mike required to file a tax return for 2021? Why or why not? 2. What portion of his Social Security benefits is taxable? 3. How much of the interest on his car loan can Mike take as an itemized deduction? 4. Is there any other advice you would give Mike?

Answer rating: 100% (QA)

1 Is Mike required to file a tax return for 2021 Why or why not Based on the provided information Mike is not required to file a tax return for 2021 T... View the full answer