Week 5 (Chapter 3) – Flashcards
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For tax purposes, head-of-household refers to
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a single individual with dependents.
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Henry is married to Lillian, and they have two dependent children. Henry can legally file using which of the following filing statuses?
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Married filing jointly
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Your take-home pay is what you are left with after subtracting withholdings from your
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gross earnings.
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Your income tax withholding is dependent on
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income level and number of withholding allowances.
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____ would be considered taxable income.
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Alimony received
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You purchased and lived in your home 8 years. Now you have received an excellent promotion, but you will have to sell your home and move to another community. The capital gains on the home sold will
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not be taxable because the home was your principal residence.
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____ income is gross income less tax deductions and payments for insurance and retirement savings.
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Take-home
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The federal income tax is:
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Progressive
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Itemized non-business expenses do not include
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life insurance premiums.
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If you do not wish to itemize deductions, you can use the
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standard deduction
