Merle is a widow,age 80 and blind,who is claimed as a dependent by her son.During 2013,she received $4,800 in Social Security benefits,$2,350 in bank interest,and $1,800 in cash dividends from stocks.Merle's taxable income is:
A)$4,150 - $1,000 - $3,000 = $150.
B)$4,150 - $3,000 = $1,150.
C)$4,150 - $1,000 - $1,500 = $1,650.
D)$8,950 - $1,000 - $3,000 = $4,950.
E)None of the above.

Question

Quizplus · Accepted Answer

Merle's taxable income is $4,150 - $1,000 - $3,000 = $150. Social Security benefits are not taxable for individuals with incomes below certain levels. Bank interest and cash dividends are taxable.

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