Determine the amount of taxable income of Michael Manx in 2012, who is single and has $300 of wages and $2,000 of interest income for the year. He is claimed as a dependent by his parents.
A) $2,000
B) $2,300
C) $1,350
D) $300
E) $0

Question

Quizplus · Accepted Answer

Since Michael is claimed as a dependent by his parents, he is not allowed a personal exemption and his standard deduction is limited to $950, since this amount is greater than $600 (his earned income of $300 plus $300).
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Determine the Amount of Taxable Income of Michael Manx in 2012