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Compare and contrast the ways that someone can pay a tax balance. Use details to support your answer.
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- Discuss the basic principles of income taxes and determine your filing status.What source is used to determine income tax expense, and what source is used to determine income tax paid?If you will be a taxpayer, how do you want to pay your taxes? Focus on the administrative feasibility among the principles of sound tax system.
- Evaluate the three strategies reducing income, increasing deductions and taking advantage of tax credits that you listed based on their overall effect on a person's tax situation (the amount of income taxes that the person will have to pay).Explain what is the most beneficial, or useful piece of tax information we can learn from tax courses. Explain why.Explain the differences between a tax credit and a tax deduction. Which is better? List three currently available tax credits.