Chapter 3: Fundamentals of Income Tax

01.Core Concepts

• Rowan is 17 years old and can be claimed as a dependent by his parents. • He earned $3,000 in wages and $500 in interest income during 2026. • His basic standard deduction is $3,450 ($3,000 of earned income + $450). • His taxable income for 2026 is $50. 2026 $3,000 Wages 500 Interest Income ($3,450) Less Standard Deduction $50 Taxable Income