College Personal Finance

The tax based on the total tax due divided by taxable income is called the

average tax rate

If Brenda wants to pay her fair share of taxes, no more and no less, she should practice

tax avoidance

average taxes formula

taxes paid/taxable income

All of the following can reduce your taxes today except investing in

a roth IRA

Peter filed his federal income taxes, but he needs to make a correction to his income. Which form should he use?

1040X

At the end of the year, Walter received a form that showed his payments from independent contracting. That form is called a

1099

When calculating federal income taxes, "gross income" includes all of the following except

Earned income credit.

Which of the following is NOT a tax that most people pay

Federal taxes on possessions

The tax that is a major source of revenue for local governments is called a(n)

Real estate property tax

The rate used to calculate the tax due on the next dollar of income is referred to as the

marginal tax rate

You may be required to make estimated tax payments if

You are an independent contractor.

Individuals can file their federal taxes using all of the following except

deliver in person

Which of the following is NOT an action that can reduce your taxes

taking out a consumer loan