Glenda, age 8, has $6,150 interest from a trust fund established by her grandfather several years ago.What is Glenda's tax liability?

Question

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For the 2022 tax year, a child's unearned income over $2,200 is taxed at their parents' tax rate. The first $1,100 of Glenda's interest income is not taxed due to the standard deduction for dependents. The next $1,100 is taxed at the child's tax rate, which is typically 10%. Therefore, $1,100 at 10% equals $110 in taxes. The remaining $3,950 ($6,150 total interest - $2,200 already accounted for) is taxed at the parents' rate, which we'll assume is 15% for this calculation, resulting in $592.50 in taxes. Adding $110 and $592.50 gives us a total tax liability of $702.50. However, since this specific answer is not available and considering the provided choices, it seems there might have been a mistake in the calculation or the understanding of the tax rules as they were applied. Given the options, $694 (B) is the closest, but please note the explanation provided does not precisely lead to any of the given choices, indicating a potential misunderstanding or simplification for the sake of this question.

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