Tony,age 15,is claimed as a dependent by his grandmother.During 2014,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a parttime job of $700.Tony's taxable income is:
A)$1,700.
B)$1,700 - $700 - $1,000 = $0.
C)$1,700 - $1,050 = $650.
D)$1,700 - $1,000 = $700.
E)None of these.

Question

Tony,age 15,is claimed as a dependent by his grandmother.During 2014,Tony had interest income from Boeing Corporation bonds of $1,000 and earnings from a part­time job of $700.Tony's taxable income is:
A)$1,700.
B)$1,700 - $700 - $1,000 = $0.
C)$1,700 - $1,050 = $650.
D)$1,700 - $1,000 = $700.
E)None of these.

Quizplus · Accepted Answer

Tony's standard deduction of $1,050 ($700 + $350)partially offsets his gross income of $1,700,resulting in taxable income of $650.

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