Wiley CPAexcel Exam Review 2014 Study Guide, Regulation

VII. FILING REQUIREMENTS

A. Form 1040 must generally be filed if gross income at least equals the sum of the taxpayer’s standard deduction plus personal exemptions allowable (e.g., generally $6,100 + $3,900 = $10,000 for single taxpayer for 2013).

1. The $1,500 (or $1,200) additional standard deduction for age is included in determining an individual’s filing requirement; the additional standard deduction for blindness and dependency exemptions are not included.

EXAMPLE

A single individual age 65 and blind who cannot be claimed as a dependency exemption by another taxpayer must file a return for 2013 if the individual’s gross income is at least $6,100 + $3,900 + $1,500 = $11,500

2. An individual who can be claimed as a dependency exemption by another taxpayer must file a return if the individual either has (1) unearned income in excess of the sum of $1,000 plus any additional standard deductions allowed for age and blindness, or (2) total gross income in excess of the individual’s standard deduction (i.e., earned income plus $300 up to the normal amount of the basic standard deduction—$6,100 for single taxpayer—plus additional standard deductions for age and blindness).

EXAMPLE

A single individual age 65 who can be claimed as a dependency exemption by another taxpayer must file a return for 2013 if the individual has unearned income (e.g., interest and dividends) in excess of $1,000 + $1,500 = $2,500.

3. Self-employed individual must file if net earnings from self-employment ...