WGU C237 Taxation I Exam Questions
Verified Answers (2025/2026)
Two components of the tax calculation - correct answer ✅tax base
multiplied by the tax rate
Characteristics of a "Tax" - correct answer ✅>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 answer ✅removed all doubt that a federal
income tax was allowed under the U.S. Constitution
Horizontal equity - correct answer ✅taxpayers in similar situations pay the
same tax
,vertical equity - correct answer ✅taxpayers in different situations pay the
same tax
Which rate (average, marginal, effective) is best to use in tax planning? -
correct answer ✅Marginal tax rate
use tax - correct answer ✅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 answer
✅Progressive
What represents the largest percentage of average state tax revenue? -
correct answer ✅Sales Tax
What represents the largest portion of U.S. Federal Tax revenues? - correct
answer ✅Individual Income Taxes
total tax/taxable income - correct answer ✅average tax rate formula
,total tax/total income - correct answer ✅effective tax rate formula
Standard Deduction - Single - correct answer ✅$12000
Standard Deduction - Single, 65+ - correct answer ✅$12000 + $1600
Standard Deduction - Married, Filing Jointly - correct answer ✅$24000
Standard Deduction - Married, Filing Jointly, 1 spouse 65+ - correct answer
✅$24000 + $1300
Standard Deduction - Married, Filing Jointly, both spouses 65+ - correct
answer ✅$24000 + $2600
Standard Deduction - Head of Household - correct answer ✅$18000
, Standard Deduction - Head of Household, 65+ - correct answer ✅$18000 +
$1600
Standard Deduction - Surviving Spouse with Dependent Child - correct
answer ✅$24000
Tax Return Due Date - Individuals - correct answer ✅15th day of 4th month
of end of tax year - April 15th
Tax Return Due Date - C Corps - correct answer ✅15th day of 4th month of
end of tax year
Tax Extensions - correct answer ✅Automatic 6 months - does not extend
due date for tax payment
Statute of Limitations on Regular Tax Returns - correct answer ✅3 years
from the later of
>(1) the date the tax return was actually filed or
>(2) the tax return's original due date
Verified Answers (2025/2026)
Two components of the tax calculation - correct answer ✅tax base
multiplied by the tax rate
Characteristics of a "Tax" - correct answer ✅>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 answer ✅removed all doubt that a federal
income tax was allowed under the U.S. Constitution
Horizontal equity - correct answer ✅taxpayers in similar situations pay the
same tax
,vertical equity - correct answer ✅taxpayers in different situations pay the
same tax
Which rate (average, marginal, effective) is best to use in tax planning? -
correct answer ✅Marginal tax rate
use tax - correct answer ✅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 answer
✅Progressive
What represents the largest percentage of average state tax revenue? -
correct answer ✅Sales Tax
What represents the largest portion of U.S. Federal Tax revenues? - correct
answer ✅Individual Income Taxes
total tax/taxable income - correct answer ✅average tax rate formula
,total tax/total income - correct answer ✅effective tax rate formula
Standard Deduction - Single - correct answer ✅$12000
Standard Deduction - Single, 65+ - correct answer ✅$12000 + $1600
Standard Deduction - Married, Filing Jointly - correct answer ✅$24000
Standard Deduction - Married, Filing Jointly, 1 spouse 65+ - correct answer
✅$24000 + $1300
Standard Deduction - Married, Filing Jointly, both spouses 65+ - correct
answer ✅$24000 + $2600
Standard Deduction - Head of Household - correct answer ✅$18000
, Standard Deduction - Head of Household, 65+ - correct answer ✅$18000 +
$1600
Standard Deduction - Surviving Spouse with Dependent Child - correct
answer ✅$24000
Tax Return Due Date - Individuals - correct answer ✅15th day of 4th month
of end of tax year - April 15th
Tax Return Due Date - C Corps - correct answer ✅15th day of 4th month of
end of tax year
Tax Extensions - correct answer ✅Automatic 6 months - does not extend
due date for tax payment
Statute of Limitations on Regular Tax Returns - correct answer ✅3 years
from the later of
>(1) the date the tax return was actually filed or
>(2) the tax return's original due date
