Montague (age 15)is claimed as a dependent by his parents Matt and Mary.In 2018,Montague received $5,000 of qualified dividends and he received $800 from a part time job.What is his taxable income for 2018?

Question

Quizplus · Accepted Answer

For a dependent, the standard deduction for 2018 is $1,050 (plus $350 if their income is solely from unearned income, like qualified dividends), so Montague's taxable income would be:
($5,000 - $1,050) + ($800 - $0) = $4,750. Therefore, the answer is (C) $4,650.

Montague (Age 15)is Claimed as a Dependent by His Parents