Chapter 1, Problem 11P

Which of the following is not considered a purpose of taxation?    A. To regulate B. To make the poor poorer C. To minimize the adverse effects of certain activities D. To have an equitable distribution of wealth among inhabitants   True or False: You are employed. The Income tax on your salary is required to be paid at the Mayor’s Office.

You are employed. Your salary is your only source of income. You are subject to which of the following taxes?    A. Income Tax B. Business Tax C. A and B D. None of these

Jackie, during one of your talks, shared that she is so frustrated with taxpayers who are trying to get away with their taxes reasoning that the government is in need of funds to finance its pandemic response. You then explained, given that you are about to finish your Income Taxation course, that it is not always the case that the government collection is affected by tax escapes employed by taxpayers. Which of the following should you not include as an example to explain your case? A. tax dodging B. tax transformation C. tax shifting D. tax capitalization

Question 31 of 50. Review the following scenario, then choose the appropriate response describing steps a paid tax preparer must take to demonstrate due diligence. Charlie (21) comes in to your office to have his tax return prepared. He states that he is a full-tim college student with income from a part-time job, and his parents will not claim him as a dependent. He wants to claim the American Opportunity Tax Credit (AOTC). Which of the following describes an appropriate question to ask or action to take ooo Ask him if he has ever been convicted of a misdemeanor offense or had his driver's license revoked. Inform him that he may be assessed a penalty of $545 if he fails to provide all the information required. Inform him he must provide copies of all transcripts before you can prepare his retum. Request a copy of his Form 1098-T, Tuition Statement, and inquire into when and how his education and other were paid. Mark for follow up Question 32 of 50. Tee of these pro ambing systems.…

tion Which of the following are "pay as you go taxes? (multiple answers with incorrect answers cancelling correct answers, so be careful) Da Medicaid taxes O b. Medicare taxes Oc social security taxes Od. withholding taxes (federal and state) □e. worker compensation premiums Of life insurance premiums Og federal unemployment taxes Oh state unemployment taxes

This Worksheet is provided as a courtesy to aid your work. Use it at your own discretion.    Use the worksheets below to 1) calculate the tax that each person pays, and 2) the total tax revenue that will be collected.  Use the following formula to calculate each person’s tax liability: Person X → ($Income in this braquet x 0.15) + ($Income in this braquet x 0.30) = Tax Paid by Person X Example 1;  if person X earns $70,000/year, then → ($50,000  x 0.15) + ($20,000  x 0.30) = $7,500 + $6,000 = $13,500  Example 2;  if person X earns $10,000/year, then → ($10,000  x 0.15) + ($0  x 0.30) = $1,500 + $0 = $1,500   3. What percent of the Nation's Income does the Total Tax Revenue represent?

Taxpayers are having a difficult time due to the large number of tax rules in place. To put it another way, what is the meaning of "substance above form?" Can you think of any examples?

Question 1: Which of the following statements regarding Social Security tax is false? Answer: А. O Social Security tax is also referred to as OASDI tax because it was initially established to benefit retired employees, survivors of employees, and disabled employees. В. O Social Security tax was first levied on employees in 1937. С. O All earnings of an employee that exceed the taxable wage base in a single year are not subject to Social Security tax. D. O Contributions to cafeteria plans are not taxable for Social Security tax.

MODIFIED TRUE OR FALSE. State “TRUE” if the statement is correct and “FALSE” if it is incorrect, then changed it by giving the right answer. Write your answer on a separate sheet of paper. 1. A taxpayer can obtain more than one tax identification number if he or she derives income from more than one source. 2. The "take-home pay" of an employee is already net of tax. 3. Taxes on regular employees’ salaries are typically withheld either on a monthly or a semi-monthly basis. 4. Aside from taxes, contributions to SSS/GSIS, PhilHealth, Pag- IBIG, and Union dues, if any, also reduce the "take-home pay" of an employee. 5. A taxpayer obtaining more than one TIN for himself/herself is punishable by law through monetary fines or imprisonment.