Exit ticket: Calculate your federal taxes

Melinda received a 1099 for what job?

• Independent contractor for a landscaping company

• Software Engineer
• Local Ice-cream shop

• Waitress

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Tax Forms

What is the difference between tax credit and a tax deduction?

• A tax credit and a tax deduction are the same thing.
• A tax credit increases the amount of tax you owe, while a tax deduction reduces your taxable income.
• A tax credit directly reduces the amount of tax you owe, while a tax deduction reduces your taxable income.
• A tax credit is only available to individuals, while a tax deduction is only available to businesses.

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Tax Status

What does "marginal tax rate" mean?

• The marginal tax rate refers to the the highest tax bracket in which you owe taxes.  

• The marginal tax rate refers to the tax rate applied to the first dollar of an individual's income.
• The marginal tax rate refers to the tax rate applied to all income levels.
• The marginal tax rate refers to the total amount of tax paid by an individual.

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Tax Status

What is a personal tax deduction?

• A personal tax deduction reduces your taxable income causing you to have a less income to be taxes.

• A personal tax deduction is a tax credit that can be used to reduce future tax liabilities.
• A personal tax deduction is a refund given by the government for overpaying taxes.
• A personal tax deduction is a penalty imposed by the government for not paying taxes on time.

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Tax Status

What is an example of a personal tax deduction?

• Childcare expenses
• Student loan interest
• Property taxes
• Mortgage interest

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Tax Status