During 2019, Montoya (age 15)received $2,200 from a corporate bond.He also received $600 from a savings account established for him by his parents.Montoya lives with his parents and he is their dependent.What is Montoya's taxable income?

Question

Quizplus · Accepted Answer

Montoya's taxable income includes any income received that is not excluded by the tax code. His savings account interest of $600 is not excluded, but his bond income of $2,200 is excluded because it is considered tax-exempt for minors. Therefore, his taxable income is $600, and the correct answer is D.

During 2019, Montoya (Age 15)received $2,200 from a Corporate Bond