Sylvia, age 17, is claimed by her parents as a dependent. During 2014, she had interest income from a bank savings account of $2,000 and income from a parttime job of $4,200. Sylvia's taxable income is:
A) $4,200 - $4,550 = $0.
B) $6,200 - $5,700 = $500.
C) $6,200 - $4,550 = $1,650.
D) $6,200 - $1,000 = $5,200.
E) None of the above.

Question

Sylvia, age 17, is claimed by her parents as a dependent. During 2014, she had interest income from a bank savings account of $2,000 and income from a part­time job of $4,200. Sylvia's taxable income is:
A) $4,200 - $4,550 = $0.
B) $6,200 - $5,700 = $500.
C) $6,200 - $4,550 = $1,650.
D) $6,200 - $1,000 = $5,200.
E) None of the above.

Quizplus · Accepted Answer

Sylvia's total income is $6,200 ($2,000 interest + $4,200 job). The standard deduction for a dependent in 2014 is the greater of $1,000 or earned income plus $350, up to $6,200. Her earned income is $4,200, so her standard deduction is $4,550 ($4,200 + $350). Therefore, her taxable income is $6,200 - $4,550 = $1,650.

Sylvia, Age 17, Is Claimed by Her Parents as a Dependent