Hester (age 17)is claimed as a dependent by his parents, Charlton and Abigail. In 2020, Hester received $10,060 of qualified dividends, and he received $13,060 from a part-time job. What is his taxable income for 2020? (Standard deduction)

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Hester's taxable income is calculated by subtracting the standard deduction for a dependent from his total income. The standard deduction for a dependent in 2020 is the greater of $1,100 or earned income plus $350, up to the standard deduction for a single filer ($12,400). Hester's earned income is $13,060, so his standard deduction is $13,060 + $350 = $13,410. Since $13,410 exceeds the single filer standard deduction, he uses $12,400. His total income is $10,060 (dividends) + $13,060 (job) = $23,120. Taxable income is $23,120 - $12,400 = $10,720.

Hester (Age 17)is Claimed as a Dependent by His Parents