Sonja has short-term capital gains and interest income. What is her income tax liability for 2024?

To determine Sonja's income tax liability for 2024 regarding her short-term capital gains and interest income, it's essential to recognize how these types of income are taxed in the U.S.

Short-term capital gains are treated as ordinary income and taxed at the same rates as wages or salary, based on Sonja's total taxable income. Interest income is also subject to ordinary income tax rates. Assuming Sonja's total income comprises only these two components, her overall tax liability would depend on the applicable tax rates for her income bracket, which is shaped by her filing status and the total amount of her income.

If we take into account the progressive nature of income tax, the correct answer likely reflects the notion that Sonja's short-term gains and interest income, when combined, result in a total that falls within a taxable range where her effective tax rate applies, leading to a total liability of $1,170. This amount indicates that the calculation considers the current tax brackets and applicable rates for her income type for the 2024 tax year.

Combining these factors, the value of $1,170 makes sense as it showcases the liability stemming from both income sources, fitting within the context of the income tax system and Sonja's financial situation.