16. What is the most common way taxpayers pay their income tax liability during the year? Answer: The vast majority of taxpayers pay trial annual tax liability through income tax withholding deducted from their paychecks by their employer and remitted to the government on behalf of the taxpayer. Feedback: Learning Objective: 01-03 Learning Objective: 01-04 Topic: Tax return components Topic: Calculate tax liability Difficulty: 1 Easy EA: No 17. Explain how to calculate the shared responsibility payment trial the Affordable Care Act. Answer: If a taxpayer does not have qualifying health care coverage and does not qualify for an exemption, the taxpayer must make a shared responsibility payment. The payment is calculated as the greater of the following: 2.5% of household income that is greater than the tax return filing threshold or $695 per adult and $347.50 per child with a family maximum of $2,085. Feedback: Learning Objective: 01-04 Topic: Calculate tax liability Difficulty: 1 Easy EA: Yes Multiple Choice 18. A tax rate that decreases as the tax base increases is an example of what kind of tax rate structure? a. Progressive. b. Proportional. c. Regressive. d. Recessive. Answer: c
16. What is the most common way taxpayers pay their income tax liability during the year? Answer: The vast majority of taxpayers pay annual tax liability through income tax withholding deducted from their paychecks by their employer and remitted to the government on behalf of the taxpayer. Feedback: Learning Objective: 01-03 Learning Objective: 01-04 Topic: Tax return components Topic: Calculate tax liability Difficulty: 1 Easy EA: No 17. Explain how to calculate the shared responsibility payment the Affordable Care Act. Answer: If a taxpayer does not have qualifying health care coverage and does not qualify for an exemption, the taxpayer must make a shared responsibility payment. The payment is calculated as the greater of the following: 2.5% of household income that is greater than the tax return filing threshold or $695 per adult and $347.50 per child with a family maximum of $2,085. Feedback: Learning Objective: 01-04 Topic: Calculate tax liability Difficulty: 1 Easy EA: Yes Multiple Choice 18. A tax rate that decreases as the tax base increases is an example of what kind of tax rate structure? a. Progressive. b. Proportional. c. Regressive. d. Recessive. Answer: c trial trial
Solution-Manual-for-Fundamentals-of-Taxation-2018-11th-Edition-By-Cruz.docx