Solved by verified expert :1. (p. 76) Tax
Freedom Day represents the day that the average person works until to pay their
taxes each year.
2. (p. 78) An
example of an excise tax is Social Security.
3. (p. 78) Individuals
are allowed to give money or items of any value to a person without being
subject to taxes.
4. (p. 78) Amounts
given for tuition payments or medical expenses are not subject to gift
taxes.
5. (p. 79) Determining
Adjusted Gross Income is the final step in calculating federal income
tax.
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6. (p. 79) Cash
and prizes won on television game shows are usually subject to both federal and
state taxes.
7. (p. 80) The
Adjusted Gross Income is increased by the itemized or standard deduction.
8. (p. 81) When
Tom calculates his taxable income, he should subtract his tax credits from
adjusted gross income.
9. (p. 81) The
itemized deduction allowed for an individual 65 and older is higher than the
itemized deduction for a younger taxpayer.
10. (p. 82) When
Marissa completes her taxes, she can include her children, her husband, and
herself as exemptions.
11. (p. 80) Tax
tables list average tax rates.
12. (p. 84) The
average tax rate is the taxes paid on the next dollar of income.
13. (p. 84) All
individuals with taxable income need to complete the AMT calculation.
14. (p. 84) A
tax credit has a full dollar effect in lowering taxes.
15. (p. 84) A
tax credit reduces the taxable income on which the tax liability is
computed.
