Montague (age 15)is claimed as a dependent by his parents, Matt and Mary. In 2020, Montague received $5,000 of qualified dividends, and he received $800 from a part-time job. What is his taxable income for 2020?

Question

Quizplus · Accepted Answer

Montague's standard deduction is the greater of $1,100 or his earned income plus $350. His earned income is $800, so his standard deduction is $1,150. His total income is $5,800 ($5,000 dividends + $800 earned). Taxable income is $5,800 - $1,150 = $4,650.

Montague (Age 15)is Claimed as a Dependent by His Parents