Leona's Tax Return Requirement

What is the largest amount of adjusted gross income that Leona can have for 2020 without being required to file a tax return? Final answer: For 2020, the largest amount of adjusted gross income Leona can have without needing to file a tax return is $14,050, which includes the standard deduction for her age. Therefore, correct option is b). Explanation: The question asks about the largest amount of adjusted gross income (AGI) that Leona, who is 68 years old and single, can have for the year 2020 without being required to file a tax return. For the tax year 2020, the standard deduction for an individual over the age of 65 is higher than for those under 65. Taking this into account, the answer is $14,050. This includes the standard deduction of $12,400 for single filers plus an additional standard deduction for those aged 65 or older, which for 2020 is $1,650. Therefore, combining these amounts, the total is $14,050 for a single person who is 68 years old.

Understanding Leona's Tax Situation

Adjusted Gross Income (AGI): AGI is an individual's total income minus specific deductions such as educator expenses, student loan interest, and contributions to retirement accounts. It is important to determine the AGI to assess tax liability.

Standard Deduction for Taxpayers Over 65 Years Old

For taxpayers who are 65 years or older, the standard deduction is higher. In the case of Leona, being 68 years old, she qualifies for an additional standard deduction on top of the basic deduction available to all taxpayers.

Calculation for Leona's Tax Return Requirement

To calculate the maximum AGI that Leona can have without needing to file a tax return, we consider the standard deduction components. For the year 2020, the standard deduction for a single filer is $12,400. An additional standard deduction of $1,650 is applicable for individuals aged 65 or older.

Therefore, for Leona, her total standard deduction will be $12,400 + $1,650 = $14,050. This means that Leona can have an adjusted gross income of up to $14,050 in 2020 without being required to file a tax return.

It is essential for taxpayers to understand the tax rules applicable to their age group and filing status to ensure compliance with the IRS regulations.

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