Sylvia,age 17,is claimed by her parents as a dependent.During 2017,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:
A)$4,200 - $4,550 = ($350).
B)$6,200 - $5,700 = $500.
C)$6,200 - $4,550 = $1,650.
D)$6,200 - $1,000 = $5,200.
E)None of these.

Question

Quizplus · Accepted Answer

Sylvia's total income is $6,200 ($2,000 interest income + $4,200 part-time job income). However, she can't claim her personal exemption because she is claimed as a dependent by her parents. Therefore, her taxable income is her total income minus the standard deduction for a dependent, which is $4,550 for tax year 2017.

Taxable income = $6,200 - $4,550 = $1,650.

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