Reference no: EM133167049

1. A progressive tax structure like the one we have in the United States means?

A. It is the same as flat tax in which everyone pays the same rate on taxable income

B. The tax rate increases as your income increases

C. Is the amount of tax on $1 of additional taxable income

D. None of the above

2. Which are in the correct sequence regarding your income tax return?

A. Gross Income less adjustments to income equals adjusted gross income

B. Gross income less the standard deduction or itemized deductions equals taxable income

C. Adjusted gross income less the standard or itemized deductions equals marginal tax income

D. Gross income less adjustments to income equals taxable income

3. Tax evasion vs tax avoidance, which statement is correct A. Tax avoidance is the willful intent to defraud the government

B. Tax evasion is legal

C. Tax avoidance is where an individual reduces his/her taxes by complying with the rules and Regulations of the IRS.

D. There is no difference between tax avoidance and tax evasion in the eyes of the IRS

4. Regarding your filing status on your tax return

A. If you are married on December 31° you still can file as single for the year.

B. Head of household is generally an unmarried individual but could be used by a married Individual assuming certain requirements are met and they meet the other requirements for head of household status.

C. Signing a joint tax return does not create tax liability for the non-earning spouse in the event the IRS determines that a tax liability is assessed.

D. All are correct