Was doing a sample quiz and the question was "age is a factor in determining if a taxpayer must file a return only if they are 65 or older?" True or False?
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Are you asking us for the answer to the question? That would seem to defeat the purpose of the quiz. Why not post your answer and reasoning first, then we can discuss it. -
I agree with Gary, but this is not a really a great question.Originally posted by zeros View Post
Personally, I am always accused of reading too deeply into these things.
Age, marital status, filing status, dependency status, type of income, and susceptability to other taxes are all considerations.
In my mind, some of these (like dependency for nondisabled Qualifying Children or marital status) are related to age (and local law). Age is not the entire reason behind these items, but is a "factor" that is considered in determining whether or not those rules apply. Likewise, age is a "factor" in determining if a taxpayer is subject to the "Kiddie Tax" (along with other rules). This makes me want to answer "False."
However, having learned not to read into things so deeply, my answer would be that the only time age is a principal factor in determining if a return is required would be the age 65 rules. Thus, I think they want the answer "True."
By the way, I believe the way the question is worded is quite poor. Age is also a factor in determining if a taxpayer must file a return if they are under 65.DougComment
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false
The answer should be false - age is NOT a factor in determining whether someone should FILE a return - think lots of older clients (into their 80s and 90s) still having to file a return due to INCOME (sch D especially)...Comment
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I've yet to meet a 1 year old who had enough income to file a tax return. I know they are out there, I just haven't met one.Comment
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I think the answer is "True", but I agree it's a poorly-worded question.
A Single taxpayer under 65 must file a tax return is gross income was at least $9,500, but a Single taxpayer over 65 must file a tax return if gross income was at least $10,950. (And so on for MFJ, MFS, HOH, and QW with the amounts being different)."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Age
JohnH has it correct. That is one of the "Test" questions in the study exam for the RTRP exam.Comment
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The answer is false. Age is a factor in determining whether a person of any age must file a return. As JohnH illustrates, if a single person is under 65, the filing requirement is $9,500. If a single person is 65 or older, the filing requirement is $10,950. Thus, both for under age 65 and age 65 or older, you have to know a person's age before determining their filing requirement.Last edited by Bees Knees; 06-13-2012, 02:34 PM.Comment
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I agree. False.Comment
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Age a factor?
Age is not a factor. Income is a factor as to whether to file. Age is only a factor in establishing the income level at which a return should be filed.
If you are ten years old and make a million dollars, you need to file. If you only make $ 100, you don't need to file.
If you are 99 years old an make $ 5000, you do not need to file, but if you make a million, you do need to file.Comment
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Age
Single, income $10,000. File a tax return? Yes or No?Comment
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How about a person with no income, not even a distribution from their regular IRA with no basis that had $50,000 in it at the end of last year?DougComment
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I vote for TRUE
I tend to agree with John.Originally posted by JohnH View Post
The intent of the question is (likely) determining when age in and of itself can be a consideration factor for "must" filing.
Or in simpler terms, a person <65 faces different filing requirements than a person >65 with all other facts being the same. Except for that single break point, the actual age of the taxpayer is not specifically relevant.
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