Intuit Academy Tax Practice Exam

If a taxpayer has no dependents and earns $6,000, what can they expect regarding taxes?

1. They will owe money

2. They will get a refund

3. They will pay state taxes only

4. They are exempt from all taxes

The correct answer is: They will get a refund

For a taxpayer with no dependents and an income of $6,000, the expectation of receiving a refund is based on several factors, primarily the tax structure for low-income earners. In the United States, individuals who earn below the standard deduction threshold generally do not have a tax liability. For the tax year in question, the standard deduction is significantly higher than $6,000, which means this taxpayer would not owe federal income taxes on their earnings. Additionally, if they had any taxes withheld from their paycheck throughout the year, they could qualify for a refund when filing their tax return. This is especially true if the taxpayer meets certain criteria, such as being eligible for the Earned Income Tax Credit, which is intended to provide financial relief to lower-income workers. In summary, a taxpayer with an income of $6,000 and no dependents is likely to receive a refund, primarily due to the standard deduction exceeding their income, thus eliminating any tax liability.