Caroline, age 66 and filing single as a dependent of another, received the following income items for 2016:
Social Security benefits (nontaxable)....................................$ 3,000
Pension benefits (taxable).........................................................6,450
Interest income (taxable)...........................................................2,050
Total.........................................................................................$11,500
Caroline’s tax liability (before credits) is $230.
a. What is Caroline’s tentative tax credit for the elderly (before the tax liability limitation is applied)?
b. What is Caroline’s allowable tax credit?