Indicate whether each of the statements below is true or false by clicking on the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.
- The highest standard deduction amount is associated with the married filing jointly and qualifying widow(er) with dependent child filing statuses.
- The lowest standard deduction amount is associated with the single and married filing separately filing statuses.
- The standard deduction amount affects the number of exemptions.
- The higher the standard deduction amount, the lower the taxable income.
- A taxpayer who can be claimed as a dependent on another taxpayer's return must claim the standard deduction for his or her filing status.
Review Form 1040 for Mr. and Mrs. Inohara by clicking the button View Form 1040. Then, answer the following questions by typing your answers in the space provided or clicking on the correct answers. To assess your answers, click the Check My Answers button at the bottom of the page.
- What is the filing status?
- Why is the standard deduction amount on line 40 greater than the amount shown in the box in the left margin for married filing jointly?
- The amount on line 42 was calculated by multiplying $3950 (the exemption amount for 2014) by 4 exemptions.