Tony,age 15,is claimed as a dependent by his grandmother.During 2013,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $700.Tony's taxable income is:

Question

Quizplus · Accepted Answer

Tony's taxable income is calculated as follows:
Total income = $1,000 (interest income) + $700 (earnings from part-time job) = $1,700
However, Tony can only claim the standard deduction for someone who can be claimed as a dependent, which is $1,050 for 2013.
Taxable income = Total income - Standard deduction = $1,700 - $1,050 = $650.

Tony,age 15,is Claimed as a Dependent by His Grandmother