The Research Case Study 1
University of Arizona Global Campus ACC
610 Advanced Federal Taxation
Introduction
Although filing tax returns and paying taxes is part of life for many Americans, it is
important to understand the correct filing. The filing status determines what forms are needed to
file a taxpayer’s return. It is used to determine whether or not filing a return could receive a
refund. Having the correct filing status can determine certain credits that are available and the
amount of tax they are obligated to pay.
It is important to understand the five IRS filing statuses. They are single, married filing
jointly, married filing separately, head of household, and qualifying widow(er) with dependent
child. These are determined by your martial status at the end of the filing year, i.e. December
31st. However, there may be times when more than one of these statuses could apply.
Taxpayers at that time usually decide to file according to which status allows them to pay the
least amount of tax. Below, we are going to analyze various tax scenarios to determine filing
status for a particular taxpayer. We will identify inclusions and exclusions from various tax
, scenarios from their gross income, as well as explain deductions available for certain individual
taxpayers.
Tax Scenario Chapter 4, Problem 54
Within this tax scenario, we are going to analyze the appropriate tax filing status for Janis
Taylor. Janis is a single individual who also has an 18-year-old son, Marty. He is Janis’s only
child and has lived with his mother his entire life. Recently, Marty had taken a special
assignment with the Marines and was sent to Australia for nine months of the current filing year.
Throughout the time of Marty’s life, Janis has always been able to file under the status of head of
household. He was considered a qualifying child (dependent), and although he was stationed in
Australia nine months of this current year, he still meets the other qualifying tests. We will need
University of Arizona Global Campus ACC
610 Advanced Federal Taxation
Introduction
Although filing tax returns and paying taxes is part of life for many Americans, it is
important to understand the correct filing. The filing status determines what forms are needed to
file a taxpayer’s return. It is used to determine whether or not filing a return could receive a
refund. Having the correct filing status can determine certain credits that are available and the
amount of tax they are obligated to pay.
It is important to understand the five IRS filing statuses. They are single, married filing
jointly, married filing separately, head of household, and qualifying widow(er) with dependent
child. These are determined by your martial status at the end of the filing year, i.e. December
31st. However, there may be times when more than one of these statuses could apply.
Taxpayers at that time usually decide to file according to which status allows them to pay the
least amount of tax. Below, we are going to analyze various tax scenarios to determine filing
status for a particular taxpayer. We will identify inclusions and exclusions from various tax
, scenarios from their gross income, as well as explain deductions available for certain individual
taxpayers.
Tax Scenario Chapter 4, Problem 54
Within this tax scenario, we are going to analyze the appropriate tax filing status for Janis
Taylor. Janis is a single individual who also has an 18-year-old son, Marty. He is Janis’s only
child and has lived with his mother his entire life. Recently, Marty had taken a special
assignment with the Marines and was sent to Australia for nine months of the current filing year.
Throughout the time of Marty’s life, Janis has always been able to file under the status of head of
household. He was considered a qualifying child (dependent), and although he was stationed in
Australia nine months of this current year, he still meets the other qualifying tests. We will need
