1
WGU C237 Tax 1 Exam Questions and
Answers (Latest Update 2025) Verified
Answers
Two components of the tax calculation - correct answers ✅tax
base multiplied by the tax rate
Characteristics of a "Tax" - correct answers ✅>Payment
required - NOT VOLUNTARY
>Payment imposed by government agency (federal, state, local)
>Payment not tied directly to benefit received by the taxpayer
16th Amendment - correct answers ✅removed all doubt that a
federal income tax was allowed under the U.S. Constitution
Horizontal equity - correct answers ✅taxpayers in similar
situations pay the same tax
vertical equity - correct answers ✅taxpayers in different
situations pay the same tax
Which rate (average, marginal, effective) is best to use in tax
planning? - correct answers ✅Marginal tax rate
use tax - correct answers ✅levied on goods owned, possessed, or
consumed within a state that were not purchased within the state
pg. 1
,2
U.S. Federal Income Tax is what kind of tax system? - correct
answers ✅Progressive
What represents the largest percentage of average state tax
revenue? - correct answers ✅Sales Tax
What represents the largest portion of U.S. Federal Tax revenues?
- correct answers ✅Individual Income Taxes
total tax/taxable income - correct answers ✅average tax rate
formula
total tax/total income - correct answers ✅effective tax rate
formula
Standard Deduction - Single - correct answers ✅$12000
Standard Deduction - Single, 65+ - correct answers ✅$12000 +
$1600
Standard Deduction - Married, Filing Jointly - correct answers
✅$24000
Standard Deduction - Married, Filing Jointly, 1 spouse 65+ -
correct answers ✅$24000 + $1300
Standard Deduction - Married, Filing Jointly, both spouses 65+ -
correct answers ✅$24000 + $2600
pg. 2
, 3
Standard Deduction - Head of Household - correct answers
✅$18000
Standard Deduction - Head of Household, 65+ - correct answers
✅$18000 + $1600
Standard Deduction - Surviving Spouse with Dependent Child -
correct answers ✅$24000
Tax Return Due Date - Individuals - correct answers ✅15th day
of 4th month of end of tax year - April 15th
Tax Return Due Date - C Corps - correct answers ✅15th day of
4th month of end of tax year
Tax Extensions - correct answers ✅Automatic 6 months - does
not extend due date for tax payment
Statute of Limitations on Regular Tax Returns - correct answers
✅3 years from the later of
>(1) the date the tax return was actually filed or
>(2) the tax return's original due date
Extended Statute of Limitations - correct answers ✅>SIX YEAR
STATUTE OF LIMITATION - if taxpayer omits items of gross
income that exceeds 25% of gross income
pg. 3
WGU C237 Tax 1 Exam Questions and
Answers (Latest Update 2025) Verified
Answers
Two components of the tax calculation - correct answers ✅tax
base multiplied by the tax rate
Characteristics of a "Tax" - correct answers ✅>Payment
required - NOT VOLUNTARY
>Payment imposed by government agency (federal, state, local)
>Payment not tied directly to benefit received by the taxpayer
16th Amendment - correct answers ✅removed all doubt that a
federal income tax was allowed under the U.S. Constitution
Horizontal equity - correct answers ✅taxpayers in similar
situations pay the same tax
vertical equity - correct answers ✅taxpayers in different
situations pay the same tax
Which rate (average, marginal, effective) is best to use in tax
planning? - correct answers ✅Marginal tax rate
use tax - correct answers ✅levied on goods owned, possessed, or
consumed within a state that were not purchased within the state
pg. 1
,2
U.S. Federal Income Tax is what kind of tax system? - correct
answers ✅Progressive
What represents the largest percentage of average state tax
revenue? - correct answers ✅Sales Tax
What represents the largest portion of U.S. Federal Tax revenues?
- correct answers ✅Individual Income Taxes
total tax/taxable income - correct answers ✅average tax rate
formula
total tax/total income - correct answers ✅effective tax rate
formula
Standard Deduction - Single - correct answers ✅$12000
Standard Deduction - Single, 65+ - correct answers ✅$12000 +
$1600
Standard Deduction - Married, Filing Jointly - correct answers
✅$24000
Standard Deduction - Married, Filing Jointly, 1 spouse 65+ -
correct answers ✅$24000 + $1300
Standard Deduction - Married, Filing Jointly, both spouses 65+ -
correct answers ✅$24000 + $2600
pg. 2
, 3
Standard Deduction - Head of Household - correct answers
✅$18000
Standard Deduction - Head of Household, 65+ - correct answers
✅$18000 + $1600
Standard Deduction - Surviving Spouse with Dependent Child -
correct answers ✅$24000
Tax Return Due Date - Individuals - correct answers ✅15th day
of 4th month of end of tax year - April 15th
Tax Return Due Date - C Corps - correct answers ✅15th day of
4th month of end of tax year
Tax Extensions - correct answers ✅Automatic 6 months - does
not extend due date for tax payment
Statute of Limitations on Regular Tax Returns - correct answers
✅3 years from the later of
>(1) the date the tax return was actually filed or
>(2) the tax return's original due date
Extended Statute of Limitations - correct answers ✅>SIX YEAR
STATUTE OF LIMITATION - if taxpayer omits items of gross
income that exceeds 25% of gross income
pg. 3
