If You Are a Professional Who Is Likely to Receive

question 50

Multiple Choice

If you are a professional who is likely to receive income that is not subject to withholding,then you are required to _____.

• A)pay an estimated tax
• B)file an amended return
• C)file an extension
• D)deduct tax credit
• E)calculate itemized deductions

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Definitions:

Marginal Tax Rate

The rate of tax applied to the last dollar of income, reflecting the tax bracket into which the incremental income falls.

Average Tax Rate

The Average Tax Rate is the proportion of the total taxable income paid as taxes, calculated by dividing the total amount of taxes paid by the total income.

Defense Spending

Government expenditure on military and defense-related activities, including salaries, equipment, research, and development.

National Debt

The total fiscal debt amassed by a country's government, sourced through a variety of methods.