Asked by Alfred Lopez on Jun 12, 2024
Verified
In terms of dollars,wage-earning taxpayers will normally pay the majority of their tax liability:
A) When they file their tax return.
B) Through withholding from their wages.
C) In the following tax year.
D) In advance in January.
Tax Liability
The total amount of tax that an individual or entity is legally obligated to pay to a taxing authority based on income, property value, transactions, or other taxable events.
Wage-Earning Taxpayers
Individuals who receive income in the form of wages, salaries, or tips from employment.
Withholding
The practice of deducting taxes from an employee's salary by their employer, to pay it directly to the government as a part of the employee's income tax liability.
- Evaluate initial tax burdens and understand the influences determining them.
Verified Answer
EH
Elizabeth HazelwoodJun 14, 2024
Final Answer :
B
Explanation :
Wage-earning taxpayers typically pay the majority of their tax liability through withholding from their wages, where a portion of their paycheck is deducted and sent to the government to cover their tax liability. This happens throughout the year, rather than in a lump sum at tax time (A). Tax liability is not typically paid in the following tax year (C) or in advance in January (D).
Learning Objectives
- Evaluate initial tax burdens and understand the influences determining them.