Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Which of the following taxpayers is not eligible for an economic impact payment in 2020? a

Accounting Jan 25, 2021

Which of the following taxpayers is not eligible for an economic impact payment in 2020?

a.Kaylee, a 24-year old single individual (not a dependent) who did not file a tax return in either 2018 or 2019 as her income was below the filing threshold.

b.Blake, a single taxpayer with no income who is claimed as a dependent on his grandparents' tax return.

c.Savannah, a married taxpayer with no children, and has AGI of $75,000 in 2020.

d.Ava, a married taxpayer that had a child in 2020. Her joint AGI in 2020 was $76,000.

Expert Solution

a.

To qualify for a payment, you must:

  • Be a U.S. citizen or U.S. resident alien
  • Not be claimed as a dependent on someone else’s tax return
  • Have a valid Social Security Number (SSN). Or if you or your spouse is a member of the military, only one of you needs a valid SSN
  • Have an adjusted gross income below a certain amount that is based on your filing status and the number of qualifying children under the age of 17.
  • If you are not required to file taxes because you have limited income, even if you have no income, you are still eligible for payment.

Here in the above scenario, Kaylee's income is below the filing trushold hence it is not mandatory to file the return to obtain the benefit under economic impact payment. She will need to file her requisite information to IRS so that they can initiate the payment.

b.Blake is not eligible to recieve the benefit under economic impact payment since he is been claimed as a dependent in his grandparent's tax return. One of the condition for eligibility is you should not be claimed as a dependent on someone else's tax return.

c.As per the provisions,

If you are single or married but filling seperatly then you are eligible to receive the full payment if your adjusted gross income is below $75,000 and a reduced payment amount if it is more than $75,000 The adjusted gross income limit for a reduced payment is $99,000 if you don’t have children and increases by $10,000 for each qualifying child under 17.

Here in the present scenario, Savannah's adjusted gross income is below $75,000, she’ll receive the full $1,200.

d. I you are married and filling jointlu you are eligible to receive the full payment if your adjusted gross income is below $150,000 and a reduced payment amount if it is above $150,000. The adjusted gross income limit for a reduced payment is $198,000 if you don’t have children and increases by $10,000 for each qualifying child under 17.

Here in the present scenario, Ava's adjusted gross income is less than $150,000, she’ll receive the full $2,400. Ava will also receive $500 for each child under the age of 17 you claim on your taxes.

Hence she will get a aggregate o $2900 as economic impact payment.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment