During 2017,Montoya (age 15)received $2,200 from a corporate bond. He also received $600 from a savings account established for him by his parents.Montoya lives with his parents and he is their dependent.What is Montoya's taxable income?

Question

During 2017,Montoya (age 15)received $2,200 from a corporate bond.  He also received $600 from a savings account established for him by his parents.Montoya lives with his parents and he is their dependent.What is Montoya's taxable income?

Quizplus · Accepted Answer

Montoya's taxable income is calculated by adding up all of his income for the year and subtracting any applicable deductions. In this case, Montoya's income is $2,200 + $600 = $2,800. However, he may be able to claim the standard deduction for a dependent, which is $1,050 for the 2017 tax year. So, his taxable income would be $2,800 - $1,050 = $1,750, which is option D.

During 2017,Montoya (Age 15)received $2,200 from a Corporate Bond