Federal Taxation Chapter 1

Which of the following is an example of a progressive tax? - Federal income tax - State and local taxes levied on property - Sales tax - Social security tax

Federal income tax

A tax rate that decreases as the tax base decreases is an example of what kind of tax rate structure? - Progressive - Proportional - Regressive - Recessive

Progressive

Margaret earned $15,000 and paid $1,500 of income tax; Mike earned $50,000 and paid $5,000 of income tax. The tax rate structure they are subject is - Progressive - Proportional - Regressive - Recessive

Proportional

A tax rate that decreases as the tax base increases is an example of what kind of tax rate structure? - Progressive - Proportional - Regressive - Recessive

Regressive

Jake earned $15,000 and paid $1,500 of income tax; Jill earned $40,000 and paid $3,500 on income tax. The tax structure they are subject to is - Progressive - Proportional - Regressive - Recessive

Regressive

Which of the following is an example of a regressive tax? - Federal income tax - State and local taxes levied on property - Sales tax - Social security tax

Social security tax

Elizabeth determined that her tax liability was $3,942Her employer withheld $3,492 from her paychecks during the year. Elizabeth's tax return would show - A refund of $450 - A refund of $3,492 - Tax due of $450 - Tax due of $3,492

Tax due of $450

Sandra, a single taxpayer has taxable income of $87,491. Using the tax tables she has determined that her tax liability is - $11,124 - $13,892 - $15,284 - $15,287

$11,124

Eddie, a single taxpayer, has W-2 income of $39,238. Using the tax tables he has determined that his tax liability is - $2,886 - $3,077 - $4,326 - $4,569

- $3,077

Jennifer and Paul, who file a joint return, have taxable income of $90,225 and the following tax liability: $19,050x10%= $1,905.00 ($77,400-$19,050)x 12%= 7,002.00 ($90,225-$77,400)x 12%= 2,821.50 Total tax liability $11,728.50 Their average rate is -10% -12% -13% -22%

- 13%

Which of the following is not a permitted filing status? - Married filing jointly - Single filing jointly - Head of household - Qualified widow

- Single filing jointly

A married taxpayer has taxable income $47,861. You have calculated tax liability using the tax tables and using the tax rate schedule. What can you say about the two figures? - Tax liability determined using the tax tables will be more than tax liability determined using the tax rate schedules - Tax liability determined using the tax tables will be less than tax liability determined using the tax rate schedules - Tax liability determined using the tax tables will be the same as tax liability determined using the tax rate schedules - The answer cannot be determined with the information provided

- Tax liability determined using the tax tables will be more than tax liability determined using the tax rate schedules

Arno and Bridgette are married and have combined W-2 income of $74,612. They paid $344 when they filed their taxes. How much income tax did their employers withhold during the year? - $5350 - $7694 - $8230 - The answer cannot be determined with the information provided

- The answer cannot be determined with the information provided

On Form 1040 the amount of the standard deduction from income for tax payers filing a joint return is -$1500 -$12,000 -$24,000 -$36,000

-$24,000

Jennifer and Paul, who file a joint return, have taxable income of $90,225 and the following tax liability: $19,050x10%= $1,905.00 ($77,400-$19,050)x 12%= 7,002.00 ($90,225-$77,400)x 12%= 2,821.50 Total tax liability $11,728.50 Their marginal tax rate is -10% -12% -13% -22%

-22%

Wage income is reported to a taxpayer on a Form - W-2 - 1099-G -1099-W -1099-INT

-W-2

In 2018, individual taxpayers with only wage income must file a form: - 1040 -1040W -1099W -W-2

1040

Interest income is reported to a taxpayer on a Form - W-2 - 1099-G -1099-W -1099-INT

1099-INT