Tony,age 15,is claimed as a dependent by his grandmother.During 2015,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part-time job of $800.Tony's taxable income is:

Question

Quizplus · Accepted Answer

As Tony is claimed as a dependent by his grandmother, his standard deduction is limited to the greater of $1,050 or his earned income plus $350, which in this case is $800 + $350 = $1,150. Therefore, his taxable income is calculated as: 
Total income = $1,000 (interest income) + $800 (part-time job earnings) = $1,800 
Taxable income = Total income - Standard deduction 
Taxable income = $1,800 - $1,150 = $650. Thus, the correct answer is option C.

Tony,age 15,is Claimed as a Dependent by His Grandmother