Bart is 16 and is claimed as claim as a dependent by his grandpa. During 2005 Bart had interest income from the city of Tulsa of 1000 and earnings from a part time job of 700. How much is Barts income?
2006-10-25 06:19:42 · 5 answers · asked by brownskeith 1 in Business & Finance ➔ Taxes ➔ United States
Assuming that the interest income from the City of Tulsa comes from a tax-exempt bond, then Bart's adjusted gross income is $700. However, Bart's taxable income is -0-, since his standard deduction of $800 exceeds his wage income.
If the interest income is taxable, then Bart's adjusted gross income would be $1,700, but his taxable income would only be $900 ($1,700 agi - $800 standard deduction).
2006-10-25 07:19:53 · answer #1 · answered by jinenglish68 5 · 1⤊ 0⤋
Bart has wages of $700 and interest income of $1,000. Thus, Bart's gross income is $1700 ($700 + $1.000). His standard deduction is $950 (the greater of her earned income plus $250 or $800, but not more than the normal standard deduction.) Since Bart's gross income of $1700 is more than his standard deduction of $950, he must file a return.
2006-10-25 10:06:02 · answer #2 · answered by RamsGod 3 · 1⤊ 0⤋
He has $1700 of income but only $900 will be taxable when he files his return (1700-800 standard deduction for a person who is a dependent of someone else). The 800 is from 2005, I'm not sure what the 2006 number is.
2006-10-25 07:20:29 · answer #3 · answered by Dana B 2 · 0⤊ 1⤋
His status as a dependent has nothing to do with his income. He got $1700 in income.
2006-10-25 06:27:28 · answer #4 · answered by Anonymous · 0⤊ 1⤋
$1700.00
*edit...dollars if using us currency
2006-10-25 06:26:50 · answer #5 · answered by cookiesmom 7 · 0⤊ 1⤋