WGU C237 Taxation I definitions
Horizontal equity - correct answer similarly situated
taxpayers should be treated equally
Vertical Equity - correct answer taxpayers who are not
similarly situation should not be treated the same
Tax base - correct answer the amount to which the tax
rate is applied to determine the tax due
Marginal tax rate - correct answer the tax rate applied
to an incremental amount of taxable income that is added to the tax base
average tax rate - correct answer Total tax liability /
amount of taxable income
effective tax rate - correct answer total tax liability /
total income
Surviving Spouse - correct answer For 2 years after
spouse death if:
-have not remarried by the end of year
-be a us citizen or resident
-have qualified to file joint return in year of death
-have at least 1 dependent son or daughter living at home during the entire year
-pay over half of the expenses of the home
Head of Household - correct answer -be unmarried as
of the last day of the tax year, or married to nonresident alien, or abandoned
-not be a surviving spouse
