Canfield is single, 70 years old, and has no dependents. Canfield will not have to file a tax return in 2018 if:
I.his gross income does not exceed $12,000.
II.his only income is $300 of self-employment income.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Canfield is single, 70 years old, and has no dependents. Canfield will not have to file a tax return in 2018 if:
I.his gross income does not exceed $12,000.
II.his only income is $300 of self-employment income.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Canfield's standard deduction is $12,000. Therefore, he will not have to file a tax return if his gross income does not exceed $12,000. Additionally, self-employment income is subject to self-employment tax, which is not a tax on income. Therefore, Canfield's self-employment income of $300 will not affect his filing requirement.

Canfield Is Single, 70 Years Old, and Has No Dependents