Assume Karen is 12 years old and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Karen does not elect to include her income on her parents' return, what is her income tax liability?

A) $963

B) $550

C) $445

D) $564

Question

Carley Randolph

Business

5 April, 15:53

Assume Karen is 12 years old and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Karen does not elect to include her income on her parents' return, what is her income tax liability?

A) $963

B) $550

C) $445

D) $564

+3

Answers (1)

Know the Answer?

Maddox Perry · Answer 1

B) $550

Explanation:

the current income tax rate for incomes of a single person whose income is from 0 to 9,700 according to the IRS (Internal revenue system) is 10%

so it should pay:

taxable income x tax rate = income tax expense

5,500x 10% = 550 for income tax

It has obligation (liablity) for 550

Assume Karen is 12 years old and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Karen does not elect to include her income on her parents' return, what is her income tax liability?A) $963B) $550C) $445D) $564

Assume Karen is 12 years old and her only income is $5,500 of interest income from a bank account with money her parents have given her to save for college. If Karen does not elect to include her income on her parents' return, what is her income tax liability?

A) $963

B) $550

C) $445

D) $564