Velma is 16.Her income consists of municipal bond interest of $400 and interest credited to her savings account of $2,340.If her parent's taxable income is $88,000,what is Velma's 2013 tax liability?

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Quizplus · Accepted Answer

Velma's total income is $2,740 ($400 + $2,340). As her income is below the standard deduction amount for a single person ($12,200 in 2019), she won't owe any federal income tax. However, it's possible she may owe state and/or local taxes depending on where she lives. Choice B is the closest option to zero tax liability.

Velma Is 16