WGU C237 Tax 1 Exam Questions and Answers (Latest Update 2024/2025) Verified Answers

WGU C237 Tax 1 Two components of the tax calculation - correct answers tax base multiplied by the tax rate Characteristics of a "Tax" - correct answers Payment required - NOT VOLUNTARY Payment imposed by government agency (federal, state, local) Payment not tied directly to benefit received by the taxpayer 16th Amendment - correct answers removed all doubt that a federal income tax was allowed under the U.S. Constitution Horizontal equity - correct answers taxpayers in similar situations pay the same tax vertical equity - correct answers taxpayers in different situations pay the same tax Which rate (average, marginal, effective) is best to use in tax planning? - correct answers Marginal tax rate use tax - correct answers levied on goods owned, possessed, or consumed within a state that were not purchased within the state U.S. Federal Income Tax is what kind of tax system? - correct answers Progressive What represents the largest percentage of average state tax revenue? - correct answers Sales Tax What represents the largest portion of U.S. Federal Tax revenues? - correct answers Individual Income Taxes total tax/taxable income - correct answers average tax rate formula total tax/total income - correct answers effective tax rate formula Standard Deduction - Single - correct answers $12000 Standard Deduction - Single, 65+ - correct answers $12000 + $1600 Standard Deduction - Married, Filing Jointly - correct answers $24000 Standard Deduction - Married, Filing Jointly, 1 spouse 65+ - correct answers $24000 + $1300 Standard Deduction - Married, Filing Jointly, both spouses 65+ - correct answers $24000 + $2600 Standard Deduction - Head of Household - correct answers $18000 Standard Deduction - Head of Household, 65+ - correct answers $18000 + $1600 Standard Deduction - Surviving Spouse with Dependent Child - correct answers $24000 Tax Return Due Date - Individuals - correct answers 15th day of 4th month of end of tax year - April 15th