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I'm going to talk now about line five, personal exemptions and standard deductions, for the
form 1040EZ. The thing you need to look at here, is to determine if your parents or someone
else can claim you as a dependent, and for IRS purposes, you are a dependent if a family
member pays for more than one half of your living expenses during the year. And if you're
not sure, check with your parents or guardians to see if they're going to be claiming you.
If you're not being claimed as a dependent, do not check the boxes on line five. If you
are claimed as a dependent, check the proper box on line five for yourself, and/or your
spouse. Then we have to go to the separate form and work through that to determine how
much can be entered on line five. If you're single, and unmarried, put the figure $8,750
on line five. If you're married and filing a joint return with your spouse, put the figure
$17,500 on line five. These figures, $8,750 for single, and $17,500 for married, are the
combination of your standard deduction and personal exemptions. Together this figure
represents the amount of income which is tax free. If you earn less than $8,750 as a single
person, or $17,500 as a married couple, your income is completely tax free. You should
still file a tax return because you may have a refund coming from any tax that was withheld
on your paycheck. You may also qualify for the earned income credit. The numbers that
I quote for single and a married couple may change from year to year and you should check
the forms.