100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Tax 4001 Midterm (UWF White) (1 $7.99   Add to cart

Exam (elaborations)

Tax 4001 Midterm (UWF White) (1

 0 view  0 purchase
  • Course
  • Institution

Tax 4001 Midterm (UWF White) (1

Preview 2 out of 5  pages

  • June 20, 2024
  • 5
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
avatar-seller
Tax 4001 Midterm (UWF White)
• The goal of proper tax application is - ANS-tax minimization, not tax avoidance.

Tax - ANS-payment required by an individual or entity, to the government, unrelated to
any specific benefit or service received.

Income taxes - ANS-based on income earned/ taxable

Employment taxes - ANS-Social security, Medicare, and unemployment taxes

Excise tax - ANS-Can be a sin tax( alcohol and tobacco products), other taxes like on
cell phones and gas

Property taxes - ANS-Assessed on real and personal property

Transfer taxes - ANS-Estate tax or gift tax

Tax liability equals - ANS-Tax rate times taxable income

Average tax rate - ANS-Total tax due divided by taxable income

Effective tax rate - ANS-total tax due divided by total income

Marginal tax rate - ANS-The difference of the new total tax from the old total tax divided
by the difference between the new taxable income from the old taxable income.

Total Income - ANS-Taxable and Nontaxable

Taxable income - ANS-Wages, gambling, interest, dividends

Nontaxable income - ANS-Municipal bond interest, life insurance proceeds and child
support

Municipal bond interest - ANS-Encourages people to invest in local investments and
helps the government with lower interest rates

Three tax structures - ANS-Progressive, Proportional, Regressive

, Progressive tax structure - ANS-Income tax( the more income you earn the higher the
rate)

Proportional tax structure - ANS-Medicare tax and sales tax (flat rate)

Regressive tax structure - ANS-Social security tax (there is a tax rate up to a certain
amount of income when that income amount is reached and excess income has a tax
rate of 0%)

Five components or considerations that make up our tax system - ANS-Sufficiency,
equity, certainty, convenience, and economy

Sufficiency - ANS-Should be able to access enough revenue to make sure the
government stays funded

Equity - ANS-Should be distributed evenly among tax papers or fair

inty - ANS-Tax payers should be able to determine what their tax liability will be

Convenience - ANS-Make it easier on the tax payer to pay in the tax, pay as you go

Economy - ANS-Should be little to no cost for government to collect the tax and ensure
compliance

Our current federal tax system can be described as - ANS-Progressive

Tax is defined as - ANS-a payment required by a government agency that is unrelated
to any specific benefit or service received from the government agency

Tax due is calculated based on - ANS-Taxable income

A taxpayers average level of taxation on each dollar of TAXABLE income is -
ANS-Average tax rate

Not all income earned or received by a taxpayer is - ANS-taxable

Corporations filing requirements - ANS-all must file a tax return

Estates and Trusts filing requirements - ANS-Income greater than $6,000 must file a tax
return

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller topgradesdr. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79271 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.99
  • (0)
  Add to cart