Question

1. If the taxes your employer withheld through your paycheck for the year exceed your total tax for the year, you will ___________________.

A) be in trouble for tax evasion.

B) be eligible for a tax refund.

C) be subject to an audit.

D) need to write the IRS a check or get on a payment plan.

2. If your itemized deductions exceed the standard deduction, you should take the standard deduction.

A) True

B) False

3. The marginal tax rate is the rate that applies all of your of taxable income.

A) True

B) False

Answer 1

Part 1:

If Tax deducted ( With held Tax ) > Tax Liability, Employee is eligible for Tax refund ( Excess deducted ).

OPtion B is corrrect

Part 2:

If Itemized deduction > Statndard deduction, Standared deduction will allowed as deduction, else Itemized deduction will be allowed as deduction.

OPtion A is correct

Part 3:

Marginal Tax Rate is the rate that applicable to additional dollar earned, Hence statement made is wrong.

Option B is correct.