Question

Phil, age 20, is single and can be claimed as a dependent on his parent's return. He had $150 in interest income and wages of $7,000. What is his standard deduction?a. $7,000 b. $7,150c. $7,350 d. $12,000

Answer 1

Answer: B - $7,150

Explanation: Standard taxation is an option by IRS to reduce an inidvidual taxable income. this is subject to an individuals filling status.

Phil who is aged 20, single and who can claim a dependent on his parents tax filling return. As of 2019, his standard tax deduction is limited to his earned income plus $350.

According to the above question, Phil earns $7,000 as wages plus $150 in interest income.

From the above information, Phil has a standard tax of $7,150.