During 2014, 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 consists of the $2,200 from the corporate bond. The $600 from the savings account established by his parents is not taxable income to him. As a dependent, his standard deduction for 2014 is $1,000, so his taxable income is $2,200 - $1,000 = $1,200. Therefore, the correct answer is (D) $1,800, which is the taxable income for Montoya's case.

During 2014, Montoya (Age 15) Received $2,200 from a Corporate