Exercise $3-21($Algorithmic$)($LO$.2)$

Compute the $2022$ standard deduction for the following taxpayers.

If an amount is zero, enter $"0".$

Click here to access the Exhibits $3\mathrm{.}4$ and $3\mathrm{.}5$ to use.

a$.$ Ellie is $15$ and claimed as a dependent by her parents. She has $$1,600$ in dividends $ income and $$1,680$ in wages from a part$-$time job.

b$.$ Ruby and Woody are married and file a joint tax return. Ruby is age $66,$ and Woody is $69.$ Their taxable retirement income is $$12,625.$

c$.$ Shonda is age $68$ and single. She is claimed by her daughter as a dependent. Her earined income is $$630,$ and her interest income is $$785.$

d$.$ Frazier, age $40,$ is married but is filing a separate return. His wife itemizes her deductions.

$$

$

$

Feedback

Check My Work

A major component of the tax formula is the standard deduction. The effect of the standard deduction is to exempt part of a taxpayer's income from Federal income tax liability.