Tommy pays $1.750 in one lump sum to get his car repaired. This is the only charge he puts on his bank credit card. He carries this charge for one year at 18%. Tommy's marginal tax rate is 40%. How much does he need to earn in before-tax dollars to pay for the interest on the loan? $315 $162 $108 $525 Which of the following couples are NOT common-law partners? Ester and Tonya, who have lived together in a conjugal relationship for 11 months, and have adopted a child together. Jerome and Greta, who have been living together in a conjugal relationship for 6 years. David and Jones, who live together as roommates for a cost saving measure. Henry and Don, who had been living together for 14 months. The relationship has broken down, and they have now separated and have been living apart for 30 days. Which of the following individuals would be permitted to claim a business-use-of- home expense for their home workspace? David, who has an office and a workspace at home. He principally works from the office but spends at least one day per month working from home. Rick, who runs a catering company, and occasionally uses the kitchen in his home for additional cooking space. Steve, who works at an office, but works primarily from home as a commissioned telephone salesperson. Betty, who has no set office and works as a traveling repair person Listen Mariam is working on her income taxes, and is confused by the difference between a tax credit and a tax deduction. What is a tax deduction? An amount that can be used to offset tax payable. An amount that is deducted from total income and is effectively not subject to tax. O A credit that can be used to reduce future tax payable. An amount that can be deducted from the tax payable by an individual