Hannah, age 70 and single, is claimed as a dependent by her daughter.During 2019, Hannah had interest income of $2,550 and $850 of earned income from babysitting.Hannah's taxable income is:
A)$700.
B)$900.
C)$2,200.
D)$2,550.
E)None of these.

Question

Quizplus · Accepted Answer

For the tax year 2019, the standard deduction for a single person who can be claimed as a dependent on another person's tax return is the greater of $1,100 or the individual's earned income plus $350, but not more than the regular standard deduction for an unclaimed single filer ($12,200 for 2019). Hannah's earned income is $850, so adding $350 to this gives $1,200, which is greater than $1,100. Therefore, her standard deduction is $1,200. Her total income is $2,550 (interest) + $850 (earned income) = $3,400. Subtracting the standard deduction ($1,200) from her total income ($3,400) gives a taxable income of $2,200. However, since none of the options correctly reflects this calculation, the correct answer is E) None of these.

Hannah, Age 70 and Single, Is Claimed as a Dependent