Tax Terms Complete Questions And Answers Already Passed.
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Course
TAX.
Institution
TAX.
Filing Status - correct answer Used to determine your filing requirements, standard deduction, eligibility for certain credits, and your correct tax: Single, Married Filing Joint, Married Filing Separate, Head of Household, Qualified Surviving Spouse, Non-Reside...
Filing Status - correct answer Used to determine your filing requirements, standard
deduction, eligibility for certain credits, and your correct tax: Single, Married Filing Joint, Married Filing
Separate, Head of Household, Qualified Surviving Spouse, Non-Resident
Dependent - correct answer Either a qualifying child or qualifying relative
Deduction - correct answer A subtraction from taxable income. (Reduces taxable
income.)
Credit - correct answer A dollar-for-dollar reduction in tax.
Non-refundable credits - correct answer Credits that reduce tax to zero.
Refundable credits - correct answer Credits that can be used to generate a federal
tax refund larger than the amount of tax paid throughout the year
Constructive Receipt Principle - correct answer Income is reported in the year the
taxpayer receives the right to control the income rather than the year in which it's earned.
Return of Capital Principle - correct answer The tax basis is excluded when
calculating realized income. Meaning you will subtract your adusted tax basis from proceeds received in
a sales transaction to determine your gain.
Ordinary Income - correct answer Income taxed at the progressive tax rates
(ordinary rates). Wages, interest, business income, rents.
Capital Income - correct answer Income taxed at special, lower rates. (capital gains
rates). For qualified dividends and capital gains.
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