Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2016,she received $4,800 in Social Security benefits,$2,500 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:
A)$4,300 - $1,050 - $3,100 = $150.
B)$4,300 - $3,100 = $1,200.
C)$4,300 - $1,050 - $1,550 = $1,700.
D)$9,100 - $1,050 - $3,100 = $4,950.
E)None of these.

Question

Quizplus · Accepted Answer

Merle's gross income is $4,800 + $2,500 + $1,800 = $9,100. Her standard deduction is $1,050. Her personal exemption is $3,100. Her taxable income is $9,100 - $1,050 - $3,100 = $4,950.

Merle Is a Widow,age 80 and Blind,who Is Claimed as a Dependent