kim woods tax homework

DQR 100 – Tax Homework

! Please Read Chapter 6 (Taxes) And Show Your Work

! 1. A taxpayer with taxable income of $50,000 and total taxes due of $12,000 would have an

effective tax rate of what percentage?

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2. A special tax on alcohol, cigarettes or gasoline is what kind of tax?

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3. If you are self-employed and earning $75,000, how much would you pay in FICA taxes?

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4. If you owe $10,000 in income taxes and have had $7,500 in taxes withheld from your paycheck,

! a. would you owe additional taxes or receive a tax refund?

! ! b. how much?

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5. Provide a definition of Exemption, from a tax perspective. Please include at least one example.

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6. Provide a definition of Deduction, from a tax perspective. Please include at least three examples.

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7. Discuss the calculations/steps involved in calculating your gross income, adjusted gross income and taxable income.

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8. See page 56 of the Ibook and do question #3 of the Self Quiz. To receive credit for this question, you must show your work.

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