Tony, age 15, is claimed as a dependent by his grandmother. During 2018, Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800. Tony's taxable income is:
A) $1,800.
B) $1,800 - $800 - $1,050 = ($50).
C) $1,800 - $1,150 = $650.
D) $1,800 - $1,050 = $750.
E) None of these.

Question

Quizplus · Accepted Answer

Since Tony is a dependent of his grandmother, his standard deduction for the year 2018 is $1,050.

Therefore, Tony's taxable income is:

($1,000 + $800) - $1,050 = $1,750 - $1,050 = $700

However, since his taxable income cannot be negative, the answer is $700.

Therefore, the correct answer is C.

Tony, Age 15, Is Claimed as a Dependent by His