Katrina,age 16,is claimed as a dependent by her parents.During 2010,she earned $5,500 as a checker at a grocery store.Her standard deduction is $5,800 ($5,500 earned income + $300).

Question

Quizplus · Accepted Answer

The statement is incorrect. Even though Katrina is claimed as a dependent by her parents, she still gets her own personal exemption of $3,650. So, her total deduction would be $9,450 ($3,650 personal exemption + $5,800 standard deduction). Therefore, her taxable income would be $50 ($5,500 earned income - $9,450 total deductions), and she would owe no federal income tax.

Katrina,age 16,is Claimed as a Dependent by Her Parents