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Tax Credits. List some common types of tax credits.
Common types of tax credits include: (Select the best answer below.)
A.
child credits and reimbursements of moving expenses
B.
reimbursements of moving expense
and interest expense
C.
child care credits and child credits.
D.
child care credits and reimbursements of moving expenses
Exemptions. What is an exemption? How many exemptions may a taxpayer claim?
An exemption is permitted for: (Select the best answer below.)
A.
the dependents of the person filing the tax return.
B.
each person who is supported by the income listed on a tax return.
C.
the dependents of the person filing the tax return if those dependents have income.
D.
the person filing the tax return.
A taxpayer is entitled to one exemption for: (Select the best answer below.)
A.
each of his dependents.
B.
himself and one for each of his dependents.
C.
himself and one for his children.
D.
himself.
Marginal Tax Bracket. What is the marginal tax bracket? Why is it important?
A marginal tax bracket is the: (Select the best answer below.)
A.
tax rate imposed on any additional (marginal) income earned. A progressive tax system means the higher an individual’s income, the higher the percentage of income tax paid.
B.
tax rate imposed on any income earned. A progressive tax system means the lower an individual’s income, the higher the percentage of income tax paid.
C.
range of income in a tax bracket. A progressive tax system means the higher an individual’s income, the higher the percentage of income tax paid.
D.
row in the tax table. A progressive tax system means the lower an individual’s income, the higher the percentage of income tax paid.
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