Chapter 3 Preparing Your Taxes

The overall rate at which income is taxed, determined by dividing the tax liability by the taxable income, is referred to as the______ tax rate.

Average

A person who is unmarried or considered unmarried and pays more than half of the cost of keeping up a home for himself/herself and an eligible dependent child or relative;

Head of household

The tax paid on the next dollar of taxable income is referred to as the _____ tax rate.

Marginal

Spouse who combine their income and allowable deductions:

Married filing jointly

A couple in which each spouse files his or her own return:

Married filing separately

A tax structure in which additional taxable income is taxed at a higher rate is referred to as a

Progressive Tax Structure

A person whose spouse died within two years of the tax year and who supports a dependent child:

Qualifying window or window dependent children

A person who is unmarried or legally separated from a spouse by either a separation or final divorce decree:

Single taxpayer