11:31 X CH 4 CLASS 1 DUE TUESDAY FEBRU... OTHER TAXES 1) What role does your employer play in payment of your FICA tax (social security & Medicare)? 2) Assume that the Social Security tax rate is 6% and the Social Security maximum is $140,000 per year. A) What is the effective tax rate on someone with a $70,000 salary? B) What is the effective tax rate on someone with a $140,000 salary? C) What is the effective tax rate on someone with a $1,400,000 salary? 3) The sales tax is said to have a "flat tax rate". What does that mean? 4) Provide at least three examples of an excise tax. INCOME TAX RATES (USE THE HANDOUT IN COURSE DOCUMENTS SECTION) 1) H, a single individual has taxable income of $100,000 in 2018. A) What is H's total tax owed? B) What is H's average tax rate? C) What is H's marginal tax rate? 11:31 X CH 4 CLASS 1 DUE TUESDAY FEBRU... 1)H, a single individual has taxable income of $100,000 in 2018. A) What is H's total tax owed? B) What is H's average tax rate? C) What is H's marginal tax rate? 2) If I decides to put $1,000 in a TAX DEDUCTIBLE retirement account how much would that reduce her tax OWED? 3) A and B are Married Filing Jointly with a combined taxable income of $150,000 in 2018 A) What is their total tax owed? B) What is their average tax rate? C) What is their marginal tax rate? INCOME TAX - GROSS INCOME PART 1 1. Why do wealthy individuals generally have bonds issued by state and local governments as a significant part of their investment portfolios? 2. What is the difference between 11:31 X CH 4 CLASS 1 DUE TUESDAY FEBRU... 2) If I decides to put $1,000 in a TAX DEDUCTIBLE retirement account how much would that reduce her tax OWED? 3) A and B are Married Filing Jointly with a combined taxable income of $150,000 in 2018 A) What is their total tax owed? B) What is their average tax rate? C) What is their marginal tax rate? INCOME TAX - GROSS INCOME PART 1 1. Why do wealthy individuals generally have bonds issued by state and local governments as a significant part of their investment portfolios? 2. What is the difference between income that is tax EXEMPT and income that is tax deferred. Give an example of each. 3. Is illegal income taxable, tax exempt or tax deferred? 11:31 X CH 4 CLASS 1 DUE TUESDAY FEBRU... OTHER TAXES 1) What role does your employer play in payment of your FICA tax (social security & Medicare)? 2) Assume that the Social Security tax rate is 6% and the Social Security maximum is $140,000 per year. A) What is the effective tax rate on someone with a $70,000 salary? B) What is the effective tax rate on someone with a $140,000 salary? C) What is the effective tax rate on someone with a $1,400,000 salary? 3) The sales tax is said to have a "flat tax rate". What does that mean? 4) Provide at least three examples of an excise tax. INCOME TAX RATES (USE THE HANDOUT IN COURSE DOCUMENTS SECTION) 1) H, a single individual has taxable income of $100,000 in 2018. A) What is H's total tax owed? B) What is H's average tax rate? C) What is H's marginal tax rate? 11:31 X CH 4 CLASS 1 DUE TUESDAY FEBRU... 1)H, a single individual has taxable income of $100,000 in 2018. A) What is H's total tax owed? B) What is H's average tax rate? C) What is H's marginal tax rate? 2) If I decides to put $1,000 in a TAX DEDUCTIBLE retirement account how much would that reduce her tax OWED? 3) A and B are Married Filing Jointly with a combined taxable income of $150,000 in 2018 A) What is their total tax owed? B) What is their average tax rate? C) What is their marginal tax rate? INCOME TAX - GROSS INCOME PART 1 1. Why do wealthy individuals generally have bonds issued by state and local governments as a significant part of their investment portfolios? 2. What is the difference between 11:31 X CH 4 CLASS 1 DUE TUESDAY FEBRU... 2) If I decides to put $1,000 in a TAX DEDUCTIBLE retirement account how much would that reduce her tax OWED? 3) A and B are Married Filing Jointly with a combined taxable income of $150,000 in 2018 A) What is their total tax owed? B) What is their average tax rate? C) What is their marginal tax rate? INCOME TAX - GROSS INCOME PART 1 1. Why do wealthy individuals generally have bonds issued by state and local governments as a significant part of their investment portfolios? 2. What is the difference between income that is tax EXEMPT and income that is tax deferred. Give an example of each. 3. Is illegal income taxable, tax exempt or tax deferred
