During 2013,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 would be the $2,200 he received from the corporate bond, as interest income is taxable. The $600 he received from the savings account is considered a gift and does not count as taxable income. Therefore, his taxable income is $2,200. As a dependent, he may still be claimed on his parents' tax return and may not have to file his own tax return.

During 2013,Montoya (Age 15) Received $2,200 from a Corporate Bond