Tony, age 15, is claimed as a dependent by his grandmother. During 2014, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a parttime job of $700. Tony's taxable income is:
A) $1,700.
B) $1,700 - $700 - $1,000 = $0.
C) $1,700 - $1,050 = $650.
D) $1,700 - $1,000 = $700.
E) None of the above.

Question

Tony, age 15, is claimed as a dependent by his grandmother. During 2014, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part­time job of $700. Tony's taxable income is:
A) $1,700.
B) $1,700 - $700 - $1,000 = $0.
C) $1,700 - $1,050 = $650.
D) $1,700 - $1,000 = $700.
E) None of the above.

Quizplus · Accepted Answer

As a dependent, Tony's standard deduction is $1,050, which reduces his taxable income. Therefore, his taxable income is $1,700 - $1,050 = $650.

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