how to calculate total incomes for filing requirement

[hgtc]

Client, a single person, had no earned incomes and small dividends.   but she received $16,323 unemployment incomes in 2020.  Congress waived $10,200 from taxable incomes.  Now, my client's taxable incomes are less than $8,000.  

Is she still required to file her 2020 tax returns?

[IRonMaN]

Most likely.

[rbynaker]

I'll take the other direction, just so we have the bases covered.

Probably not.

[PKCPAMST · Accepted solution]

No. Here is the reasoning.

Code Sec. 85(a) says gross income includes any amount of unemployment compensation. Sec. 9042(a) of the ARPA, headed for the President’s signature, amends Sec. 85(c)(1) to remove up to $10,200 in unemployment compensation from gross income.

Your client’s gross income becomes $6,123, which is less than her standard deduction of $12,400 under Sec. 63(c)(1).

[rbynaker]

Unless maybe she's under 24 and a full-time student. 🙂

Otherwise my reasoning was the same as yours.

Rick