Question

Sylvia, age 17, is not claimed by her parents as a dependent. During 2016, she had interest income from a bank savings account of $2,000 and income from a part-time job of $4,200. Sylvia's taxable income is:

A.$6,200 - $1,000 = $5,200
B.
$6,200 - $4,550 = $1,650

C.None of these choices are correct.

D.$4,200 - $4,550 = $0
E.$6,200 - $5,700 = $500

Answer 1

Sylvia's total income does not exceed the standard deduction for a single individual who is not a dependent in 2016, which leads to a taxable income of $0.

The question relates to determining Sylvia's taxable income for 2016 given her earned and interest income, while not being claimed by her parents as a dependent. The total income is the sum of her part-time job earnings ($4,200) and interest income ($2,000), resulting in $6,200. In 2016, the standard deduction for a single individual who is not a dependent was $6,300, which allows Sylvia to deduct this amount from her total income to determine taxable income. Since her income does not exceed the standard deduction, her taxable income is $0.

Sylvia's taxable income for 2016 is $0, as her total income does not exceed the standard deduction for a single individual who is not a dependent.