Wilma is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2010,she received $4,800 in Social Security benefits,$2,200 in bank interest,and $1,800 in cash dividends from stocks.Wilma's taxable income is:
A)$4,000 - $950 - $2,800 = $250.
B)$4,000 - $2,800 = $1,200.
C)$4,000 - $950 - $1,400 = $1,650.
D)$8,800 - $950 - $2,800 = $5,050.
E)None of the above.

Question

Quizplus · Accepted Answer

Wilma's taxable income is $4,000 - $950 (standard deduction for a blind person) - $2,800 (exclusion for Social Security benefits) = $250.

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