BUS FPX 4065 Assessment 1 Tax Basics

Student Name

Capella University

BUS-FPX4065 Income Tax Concepts and Strategies

Prof. Name:

Date

Tax Filing Analysis for John

Filing Status

John’s filing status is single because he is not married and does not have any dependents. This classification aligns with IRS guidelines, which define single filers as individuals who are unmarried or legally separated and do not qualify for other statuses such as head of household or married filing jointly.

Filing Requirements

John is not required to file a tax return as his income does not meet the threshold mandating a filing. However, it is recommended that he file a tax return regardless, as he is eligible for a refund. Filing would ensure that John receives the refund amount due to him.

Dependency Status

John does not qualify as a dependent because his gross income exceeds the allowable exemption amount set for dependents. The IRS stipulates specific income limits and other criteria to determine dependency status, which John does not meet.

Tax Form and Filing Details

Simplest Tax Form

Based on official IRS guidelines, the simplest form for John to use is Form 1040. This form is designed for individuals with straightforward tax situations and provides the necessary sections to report income and claim any eligible credits or refunds.

Electronic Filing Cost

John can file Form 1040 electronically at no cost. The IRS offers free electronic filing options for individuals with simple tax returns, making this an accessible and cost-effective choice for him.

Refund Amount

After filing his return, John will receive a refund of $940. Filing a return ensures that the IRS processes this amount and issues it back to John in a timely manner.

Summary Table

Category	Details	Explanation
Filing Status	Single	Not married and has no dependents.
Filing Requirements	Not required but recommended	Ensures refund of $940.
Simplest Tax Form	Form 1040	Suitable for John’s simple tax situation.
Filing Cost	Free	Electronic filing is free for Form 1040.
Refund Amount	$940	Refund calculated based on taxes paid versus owed.

References

Internal Revenue Service. (n.d.). About Form 1040, U.S. Individual Income Tax Return. Retrieved from https://www.irs.gov/forms-pubs/about-form-1040