Hester (age 17) is claimed as a dependent by his parents, Charlton and Abigail. In 2014, Hester received $10,000 of qualified dividends and he received $6,000 from a part time job. What is his taxable income for 2014?

Question

Quizplus · Accepted Answer

Hester's taxable income is calculated by subtracting the standard deduction for a dependent from his total income. In 2014, the standard deduction for a dependent is the greater of $1,000 or earned income plus $350, up to the standard deduction limit for a single filer ($6,200). Hester's earned income is $6,000, so his standard deduction is $6,350. His total income is $16,000 ($10,000 dividends + $6,000 job), so his taxable income is $16,000 - $6,350 = $9,650.

Hester (Age 17) Is Claimed as a Dependent by His