During 2018,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

Quizplus · Accepted Answer

Montoya's taxable income is determined by adding all his taxable income sources together. In this case, he received $2,200 from a corporate bond and $600 from a savings account which totals up to $2,800. However, since Montoya is a dependent of his parents, he can only claim a standard deduction of $1,050. Therefore, his taxable income is $2,800 - $1,050 = $1,750. So, the correct choice is D.

During 2018,Montoya (Age 15)received $2,200 from a Corporate Bond