Tony, age 15, is claimed as a dependent by his grandmother. During 2017, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800. Tony's taxable income is:
A)$1,800.
B)$1,800 - $800 - $1,050 = ($50).
C)$1,800 - $1,150 = $650.
D)$1,800 - $1,050 = $750.
E)None of these.

Question

Quizplus · Accepted Answer

Tony's taxable income would be the sum of his interest income and earnings, minus the standard deduction for dependents. The standard deduction for dependents in 2017 was $1,050. Therefore, Tony's taxable income is $1,000 + $800 - $1,050 = $650.

Tony, Age 15, Is Claimed as a Dependent by His