Exam (elaborations)
H&R Block Ch. 1&2 Questions And Answer With Verified Solutions Already Passed (GRADED A+)
H&R Block Ch. 1&2 Questions And Answer With Verified Solutions Already Passed (GRADED A+)
[Show more]
Seller
Follow
Content preview
H&R Block Ch. 1&2 Questions AndAnswer With Verified Solutions Already
Passed (GRADED A+)
Wage
Answer: Compensation, usually in the form of money, received by
employees in exchange for their work.
Adjusted Gross Income (AGI)
Answer: The total gross income minus allowable reductions, regardless of
itemized deductions.
Credits
Answer: Tax reductions provided for specific purposes, available to
qualifying taxpayers. Some are refundable, while others are not. Some
credits may also be carried forward.
Refundable Credits
Answer: Credits where any excess over the tax liability is refunded by the
IRS.
Non-refundable Credits
Answer: Credits that reduce the tax liability to zero but cannot provide a
refund.
Earned Income
Answer: Income generated from personal work, such as wages, tips,
bonuses, and self-employment income, in contrast to income from property
or investments.
Exemption
Answer: A deduction from taxable income, such as the $3,650 exemption
allowed in 2009.
Federal Income Tax Withheld
, Answer: The portion of income withheld by an employer to prepay federal
taxes on behalf of the employee.
Gross Income
Answer: The total income received by a taxpayer, from all sources,
including money, property, or services, that is subject to tax.
Income
Answer: The gain obtained from capital, labor, or both, typically used
within terms like gross income, taxable income, and adjusted gross income.
Medicare Part A
Answer: The tax deducted from wages or self-employment income for
Medicare, typically 1.45% for employees and 2.9% for self-employed
individuals.
Social Security Tax Withheld
Answer: The employee’s portion of Social Security tax, withheld by the
employer, and submitted to the IRS.
Social Security Wages
Answer: The total wages paid to an employee that are subject to Social
Security tax, excluding tips.
Tax Liability
Answer: The total amount of tax owed to the IRS after accounting for any
credits but before considering any prepayments, like withholdings.
Taxable Income
Answer: The amount of income that is taxable after deductions, exemptions,
and adjustments are applied.
Unearned Income
Answer: Income from investments, like interest, dividends, and royalties, or
other sources not related to personal services, such as pensions or
unemployment compensation.
Resident Alien
The benefits of buying summaries with Stuvia:
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
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
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 unstoppable. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62774 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 15 years now