Ans. Option(c)
A tax credit is an amount of money that taxpayers are permitted
to subtract from taxes owed to their government. The value of a tax
credit depends on the nature of the credit; certain types of tax
credits are granted to individuals or businesses in specific
locations, classifications or industries. Unlike deductions and
exemptions, which reduce the amount of taxable income, tax credits
reduce the actual amount of tax owed
Tax deduction is a reduction of income that is able to be taxed and
is commonly a result of expenses, particularly those incurred to
produce additional income. The difference between deductions,
exemptions and credit is that deductions and exemptions both reduce
taxable income, while credits reduce tax.
What is the difference between a tax credit and a tax deduction? Choose the correct answer...
If you choose to take the standard deduction, you cannot use which of the following on your tax return; Child tax credit Mortgage interest deduction Employer share of self-employment tax deduction Taxable income is: Gross income reduced by tax deductions and credits Gross income reduced by adjustments Adjusted gross income reduced by tax deductions and credits Adjusted gross income reduced by adjustments Taxable income is: Gross income reduced by tax deductions and credits Gross income reduced by adjustments Adjusted gross...
A tax ________ reduces taxes owed dollar for dollar. Group of answer choices deduction, plan, budget,credit, None of the answers are correct 2. What is the term for a partially refundable tax credit for qualified education expenses with a maximum of $2,500 during the first four years of postsecondary education for an eligible student? Group of answer choices Postsecondary Tax Credit American Opportunity Credit College Tax Credit Refund Credit $2,500 and under tax credit 3. Moving money from one employer-sponsored...
1)Maria is in the 35% tax bracket. Steve is in the 33% tax bracket. They each itemize their deductions and pay $30,000 in mortgage interest during the year. Compare their true costs for mortgage interest. Maria's true cost for mortgage interest is $ ___ . RebeccaRebecca and RobertoRoberto, who are engaged to be married, each have an adjusted gross income of $183,000. Assume each person takes one exemption and the standard deduction. Answer the questions below using the tax table...
S. Steps to taxable income and tax liability owed What steps should you take when completing a tax return? When preparing a tax return, it is important to complete each step in the order prescribed. Identify each step in completing a tax return by choosing the step from the drop-down fields below. Step A: Determine Adjusted Gross Income Step B: Calculate Taxable Income Larger of itemized deductions or standard deduction Step C: Calculate Tax Liability Calculate tax using tax tables...
How to apply deduction to tax amount? Do multiple deductions stack? Please help grades of 30 students in a math class: ААААААввввввccccccccccoDDDDFFF Problem 5 (30 points) Using 2017 rates below, calculate the tax owed by each of the following people. Assume that they all take the standard deduction and neglect any tax credits a) Deidre is single with dependents. Her adjusted gross income is $150,000. b) Robert is a head of household taking care of two dependent children. His adjusted...
Gabriella and Roberto have adjusted gross incomes of $46,500 and $32,700, respectively. Assume that each person takes one exemption and the standard deduction. Answer parts (a) through (c) below. Married Filing Tax Rate Single Jointly 10% up to $8.925 up to $17.850 15% up to $36.250 up to $72,500 25% up to $87,850 up to $146.400 28% up to $183,250 up to $223,050 Standard $6100 $12.200 Deduction Exemptions (per $3900 $3900 person) a. Calculate the tax owed by the couple...
Mia and Michael have adjusted gross incomes of $47,600 and $33,600, respectively. Assume that each person takes one exemption and the standard deduction. Answer parts (a) through (c) below. Married Filing Tax Rate Single Jointly 10% up to $8,925 up to $17,850 15% up to $36,250 up to $72.500 25% up to $87,850 up to $146,400 28% up to $183,250 up to $223.050 Standard $6100 $12.200 Deduction Exemptions $3900 3900 (per person) a. Calculate the tax owed by the couple...
8.2. Personal Income Tax Finance is a fixed amount on your retam Lal A each person supported by you income Adjustments Adjusted gross income= Gross Income - 1 Taxable income = Advisted gross income -( Exemptions t Deductions) ) Aringle men earned wapes of $46,500 received $1850 in interest from soving acomat received $15,000 in winning on a television game show, and contributed $2800 to a tax-deferred saving plante is entitled to a personal exemption of $4,050 and a standand...
Hello, Problem Attached, all bolded parts are completed by me and were verified to be correct. I am stuck on Part E and F. For tax purposes, “gross income” is all the money a person receives in a given year from any source. But income taxes are levied on “taxable income” rather than gross income. The difference between the two is the result of many exemptions and deductions. To see how they work, suppose you made $70,000 last year in...
Mia and Michael have adjusted gross incomes of $47,600 and $33,600, respectively. Assume that each person takes one exemption and the standard deduction. Answer parts (a) through (c) below. Married Filing Single Tax Rate Jointly 10% up to $8,925 up to $17,850 15% up to $36,250 up to $72,500 25% up to $87,850 up to $146,400 28% up to $183,250 up to $223,050 Standard $6100 $12,200 Deduction Exemptions $3900 $3900 (per person) a. Calculate the tax owed by the couple...