BUS-FP4065 Assessment 1

BUS-FP4065 Assessment 1. Part 1: Provide evidence of requirements for John’s tax return from an official primary source.

1. Interactive Tax Assistant (ITA)

Answers to Your General Filing Questions

What is my filing status?

Your filing status is single

You are not eligible for any other filing status.

2. Interactive Tax Assistant (ITA)

Answers to Your General Filing Questions

Do I need to file a tax return?

You are not required to file a tax return for 2014 You should file a tax return for 2014

The return may generate a refund.

How to file a return:

BUS-FP4065 Assessment 1

Prepare your return on your own
Choose a tax preparer
Mandatory Filing: If your return’s gross income is equal to, or exceeds, $10,150.

3. John is a dependent as he lives at home with his parents and they provide over fifty percent of John’s financial support. John works part-time to save money for college and has no other income source. He is also covered by his parent’s health insurance so he has out of pocket expense for insurance.

4. According to the IRS Interactive Tax Assistance, the simplest tax form John can use will be a 1040EZ. He’s not claiming any deductions, credits, or income items that require a Form 1040 or 1040A. (You can generally use the 1040EZ if:
Your taxable income is below $100,000;
Your filing status is single or married filing jointly;
You are not claiming any dependents; and Your interest income is $1,500 or less.

If you can’t use Form 1040EZ, you may qualify to use the 1040A if:

BUS-FP4065 Assessment 1

Your taxable income is below $100,000;
You have capital gain distributions; You claim certain tax credits; and
You claim adjustments to income for IRA contributions and student loan interest.

If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. The reasons you must use the 1040 include:
Your taxable income is $100,000 or more;
You claim itemized deductions;
You are reporting self-employment income; and
You are reporting income from sale of a property.)

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