Sylvia,age 17,is claimed by her parents as a dependent.During 2016,she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200.Sylvia's taxable income is:

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Sylvia is claimed as a dependent, so her personal exemption of $4,050 cannot be claimed. Her total income is $6,200 ($2,000 + $4,200). The standard deduction for a dependent in 2016 is $1,050, so her taxable income is $6,200 - $1,050 = $5,150. However, she also qualifies for the "kiddie tax" which means the first $2,100 of her unearned income (interest income) is taxed at her parent's rate. Therefore, her taxable income will be lowered by $2,100 x her parents' tax rate. Assuming her parents' tax rate is 25%, her taxable income is $6,200 - $4,550 = $1,650.

Sylvia,age 17,is Claimed by Her Parents as a Dependent