Hester (age 17)is claimed as a dependent by his parents,Charlton and Abigail.In 2017,Hester received $10,000 of qualified dividends and he received $6,200 from a part time job.What is his taxable income for 2017?

Question

Quizplus · Accepted Answer

Hester's taxable income is calculated by subtracting the standard deduction for a dependent from his total income. In 2017, the standard deduction for a dependent is the greater of $1,050 or earned income plus $350, up to the standard deduction for a single filer ($6,350). Hester's earned income is $6,200, so his standard deduction is $6,550 ($6,200 + $350). His total income is $16,200 ($10,000 dividends + $6,200 job), so his taxable income is $9,850 ($16,200 - $6,350).

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