Montague (age 15)is claimed as a dependent by his parents, Matt and Mary. In 2020, Montague received $5,100 of qualified dividends, and he received $900 from a part-time job. What is his taxable income for 2020?

Question

Quizplus · Accepted Answer

Montague's standard deduction is the greater of $1,100 or his earned income plus $350. His earned income is $900, so his standard deduction is $1,250 ($900 + $350). His total income is $6,000 ($5,100 dividends + $900 earned). Therefore, his taxable income is $4,750 ($6,000 - $1,250).

Montague (Age 15)is Claimed as a Dependent by His Parents