Glenda, age 8, has $6,150 interest from a trust fund established by her grandfather several years ago. How much of Glenda's income is taxed at the trust and estate's tax rate?

Question

Quizplus · Accepted Answer

The trust and estate tax rate applies to incomes over $3,000, so only $3,150 of Glenda's interest income will be taxed at this rate. Therefore, the answer is $4,050 ($6,150 - $3,000).

Glenda, Age 8, Has $6,150 Interest from a Trust Fund