TAX [Exam 1]
A tax rate that decreases as the tax base increases is an example of what kind of tax rate structure? -
correct answer ✔✔Regressive
A tax rate that decreases as the tax base decreases is an example of what kind of tax rate structure? -
correct answer ✔✔Progressive
Jake earned $15,000 and paid $1,500 of income tax; Jill earned $40,000 and paid $4,000 of income tax.
The tax rate structure they are subject to is: - correct answer ✔✔Proportional
Margaret earned $15,000 and paid $1,500 of income tax; Mike earned $50,000 and paid $4,000 of
income tax. The tax rate structure they are subject to is: - correct answer ✔✔Regressive
Which of the following is an example of a regressive tax? - correct answer ✔✔Social Security Tax.
Which of the following is an example of a progressive tax? - correct answer ✔✔Federal Income Tax.
Jennifer and Paul, who file a joint return, have taxable income of $94,475 and the following tax liability:
$19,900 × 10% = $ 1,990.00
($81,050 − $19,900) × 12% = 7,338.00
($94,475 − $81,050) × 22% = 2,953.50
Total tax liability $ 12,281.50
Their marginal tax rate is: - correct answer ✔✔22%
Jennifer and Paul, who file a joint return, have taxable income of $94,475 and the following tax liability:
$19,900 × 10% = $ 1,990.00
($81,050 − $19,900) × 12% = 7,338.00
($94,475 − $81,050) × 22% = 2,953.50
, Total tax liability $ 12,281.50
Their average tax rate is: - correct answer ✔✔13%
Which of the following is not a permitted filing status? - correct answer ✔✔Single Filing Jointly
Individual taxpayers with only wage income must file a Form: - correct answer ✔✔1040
Wage income is reported to a taxpayer on a Form: - correct answer ✔✔W-2
Interest Income is reported to a taxpayer on a Form: - correct answer ✔✔1099-INT
On Form 1040, the amount of the standard deduction from income for taxpayers filing a joint return is: -
correct answer ✔✔25,100
Elizabeth determined that her tax liability was $3,492. Her employer withheld $3,942 from her
paychecks during the year. Elizabeth's tax return would show: - correct answer ✔✔A refund of $450
Sandra, a single taxpayer, has taxable income of $79,293. Using the tax tables (https://ezto-cf-
media.mheducation.com/Media/Connect_Production/bne/cruz15e/2021taxtables.pdf) , she has
determined that her tax liability is: - correct answer ✔✔13,189
A married taxpayer who files the return jointly, has taxable income of $52,759. You have calculated tax
liability using the tax tables and using the tax rate schedules. What can you say about the two figures? -
correct answer ✔✔Tax liability determined using he tax tables will be more than tax liability determined
using the tax rate schedules
Eddie, a single taxpayer, has W-2 income of $40,841. Using the tax tables ( https://ezto-cf-
media.mheducation.com/Media/Connect_Production/bne/cruz15e/2021taxtables.pdf ) , he has
determined that his tax liability is: - correct answer ✔✔3,194
Arno and Bridgette are married and have combined W-2 income of $72,441. They paid an additional
$538 when they filed their taxes. How much income tax did their employers withhold during the year?
A tax rate that decreases as the tax base increases is an example of what kind of tax rate structure? -
correct answer ✔✔Regressive
A tax rate that decreases as the tax base decreases is an example of what kind of tax rate structure? -
correct answer ✔✔Progressive
Jake earned $15,000 and paid $1,500 of income tax; Jill earned $40,000 and paid $4,000 of income tax.
The tax rate structure they are subject to is: - correct answer ✔✔Proportional
Margaret earned $15,000 and paid $1,500 of income tax; Mike earned $50,000 and paid $4,000 of
income tax. The tax rate structure they are subject to is: - correct answer ✔✔Regressive
Which of the following is an example of a regressive tax? - correct answer ✔✔Social Security Tax.
Which of the following is an example of a progressive tax? - correct answer ✔✔Federal Income Tax.
Jennifer and Paul, who file a joint return, have taxable income of $94,475 and the following tax liability:
$19,900 × 10% = $ 1,990.00
($81,050 − $19,900) × 12% = 7,338.00
($94,475 − $81,050) × 22% = 2,953.50
Total tax liability $ 12,281.50
Their marginal tax rate is: - correct answer ✔✔22%
Jennifer and Paul, who file a joint return, have taxable income of $94,475 and the following tax liability:
$19,900 × 10% = $ 1,990.00
($81,050 − $19,900) × 12% = 7,338.00
($94,475 − $81,050) × 22% = 2,953.50
, Total tax liability $ 12,281.50
Their average tax rate is: - correct answer ✔✔13%
Which of the following is not a permitted filing status? - correct answer ✔✔Single Filing Jointly
Individual taxpayers with only wage income must file a Form: - correct answer ✔✔1040
Wage income is reported to a taxpayer on a Form: - correct answer ✔✔W-2
Interest Income is reported to a taxpayer on a Form: - correct answer ✔✔1099-INT
On Form 1040, the amount of the standard deduction from income for taxpayers filing a joint return is: -
correct answer ✔✔25,100
Elizabeth determined that her tax liability was $3,492. Her employer withheld $3,942 from her
paychecks during the year. Elizabeth's tax return would show: - correct answer ✔✔A refund of $450
Sandra, a single taxpayer, has taxable income of $79,293. Using the tax tables (https://ezto-cf-
media.mheducation.com/Media/Connect_Production/bne/cruz15e/2021taxtables.pdf) , she has
determined that her tax liability is: - correct answer ✔✔13,189
A married taxpayer who files the return jointly, has taxable income of $52,759. You have calculated tax
liability using the tax tables and using the tax rate schedules. What can you say about the two figures? -
correct answer ✔✔Tax liability determined using he tax tables will be more than tax liability determined
using the tax rate schedules
Eddie, a single taxpayer, has W-2 income of $40,841. Using the tax tables ( https://ezto-cf-
media.mheducation.com/Media/Connect_Production/bne/cruz15e/2021taxtables.pdf ) , he has
determined that his tax liability is: - correct answer ✔✔3,194
Arno and Bridgette are married and have combined W-2 income of $72,441. They paid an additional
$538 when they filed their taxes. How much income tax did their employers withhold during the year?
