Income tax ch. 1 quiz

Tameka has taxable income of $97,075 that is taxed as follows: $9,700 × 10% =$970.00 ($39,475 − $9,700) × 12% =3,573.00 ($84,200 − $39,475) × 22% =9,839.50 ($97,075 − $84,200) × 24% =3,090.00 Total tax liability$17,472.50 Her average tax rate is:

18%

Jordan and Paul, a married couple, have taxable income of $87,175, which is taxed as follows: $19,400 × 10% =$1,940.00 ($78,950 − $19,400) × 12% =7,146.00 ($87,175 − $78,950) × 22% =1,809.50 Total tax liability$10,895.50 Their marginal tax rate is

22%

Federal tax legislation generally originates in what body?

House ways and means committee

Which is a statutory source of tax authority?

Internal Revenue code

Which is a primary source of tax authority?

Judicial sources, Statutory sources, Administrative sources

Which is not a proportional tax?

federal income tax

Which of the following types of Regulations take the place of the Internal Revenue Code and have the full effect of law?

legislative

a tax rate that increases as the tax base increases is an example of what kind of tax rate structure?

progressive

A state or local sales tax is an example of

proportional rate structure

Victoria determined her tax liability was $6,451. Her employer withheld $6,145 from her paychecks during the year. Victoria's tax return would show

tax due of $306