Asked by Myranda Jimenez on May 16, 2024
Verified
With respect to the income tax formula,which of the following statements is incorrect?
A) The simplified income tax formula is only applicable to taxpayers with taxable income less than $100,000.
B) Taxpayers are allowed certain deductions from income.
C) For many taxpayers,the simple income tax formula is sufficient to determine tax liability.
D) When calculating the tax refund or tax due with the return,taxpayers need to subtract tax payments and tax credits from their tax liability.
Tax Liability
The total amount of tax owed to the IRS by an individual or business for a given tax year.
Income Tax Formula
The calculation used to determine the amount of income tax that an individual or entity owes to the government.
Taxpayers
Persons or organizations required to remit taxes to a government at the federal, state, or local level.
- Gain insight into the constituents and formulas used in determining income tax.
Verified Answer
RJ
Rahmatul Jamilatul Bahriah SarbaniMay 19, 2024
Final Answer :
A
Explanation :
The simplified income tax formula is applicable to all taxpayers, regardless of their taxable income. The formula applies a fixed percentage to the taxable income, which determines the tax liability. Therefore, statement A is incorrect.
Learning Objectives
- Gain insight into the constituents and formulas used in determining income tax.
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