The U.S. Income Tax Code Is Generally ________

question 3

Multiple Choice

The U.S. income tax code is generally ________.

• A) regressive
• B) progressive
• C) flat
• D) peaked

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Definitions:

Schedule H

Schedule H is a tax form used by household employers to report wages paid to household employees, such as nannies or housekeepers, and calculate Social Security, Medicare, and FUTA taxes.

Household Worker

An employee who performs domestic services in a private home, such as a nanny, maid, or gardener.

Form 1040

The official form provided by the Internal Revenue Service (IRS) that people use to submit their yearly income tax returns.

Wage Bracket Method

A technique used by employers to determine the amount of federal income tax to withhold from employees' paychecks based on their earnings and filing status.