1. What is a progressive tax system? How does it differ from a regressive tax system? A progressive tax system is when those with higher incomes are required to pay a bigger potion of their income in taxes. The more money you make the more taxes you will pay. Progressive tax system is different from regressive tax system is in regressive tax system, everyone is charged the exact same amount, percentage, or proportion.
2. What is gross income? What types of income are included in gross income? Gross income is all your sources of income. Types of incomes included in gross incomes are if you have more than one job. It also includes having an investment income, receive alimony, and receive unemployment compensations.
3. What is the alternative minimum tax? Alternative minimum tax is designed to make sure that those with higher incomes pay their fair share of taxes, even if they have a large number of deductions that take their adjusted gross income into a lower tax bracket. …show more content…
What is a tax audit? What are some different types of audits? A tax audit is a detailed examination of a return by the IRS. Different types of audits include are a correspondence audit, an office audit, and a field audit. A correspondence audit is the simplest and requires an individual to respond via email to clarify information. An office audit requires an individual to visit an IRS office to clarify information. A field audit has an IRS agent visit the person’s home, work, or accountant’s office.
5. What are two ways that a person's wealth may be taxed? Describe these taxes. Two ways a person’s wealth may be taxed are by form 1040-ES
2. What is gross income? What types of income are included in gross income? Gross income is all your sources of income. Types of incomes included in gross incomes are if you have more than one job. It also includes having an investment income, receive alimony, and receive unemployment compensations.
3. What is the alternative minimum tax? Alternative minimum tax is designed to make sure that those with higher incomes pay their fair share of taxes, even if they have a large number of deductions that take their adjusted gross income into a lower tax bracket. …show more content…
What is a tax audit? What are some different types of audits? A tax audit is a detailed examination of a return by the IRS. Different types of audits include are a correspondence audit, an office audit, and a field audit. A correspondence audit is the simplest and requires an individual to respond via email to clarify information. An office audit requires an individual to visit an IRS office to clarify information. A field audit has an IRS agent visit the person’s home, work, or accountant’s office.
5. What are two ways that a person's wealth may be taxed? Describe these taxes. Two ways a person’s wealth may be taxed are by form 1040-ES