Compose a 1250 words assignment on tax accounting.

Compose a 1250 words assignment on tax accounting. Needs to be plagiarism free! The Social Security tax is relative until the taxpayer reaches the maximum level of income. However, when the taxpayers income arrives at the maximum limit, all income earned over the limit is not taxed. That is why social security tax is considered as a regressive tax because lower-income individual has to pay higher taxes than the person earning in excess of the maximum income level.

A marginal tax rate is the tax that applies to the taxpayer’s last dollar of taxable income. As the income increases, taxes paid by the taxpayer also increases and each additional dollar of income is taxed at the highest rate applicable to the total income.

Don't use plagiarized sources. Get Your Custom Essay on
Compose a 1250 words assignment on tax accounting.
Just from $13/Page
Order Essay

A taxpayer’s average tax rate is the ratio of the amount of taxes paid to taxable income. It is calculated by dividing the total income taxes paid by your total income. The average tax rate includes taxes paid at all levels of income so it will be less than the marginal rate.

The difference between marginal and average tax rates is that the marginal tax rate is the highest rate at which persons are taxed, but average tax rate represents the percentage of the income that goes toward paying taxes. As gross income increases, the increasing marginal tax decreases after-tax net income and resulting, the effective average tax rate increases with the rising income.

Sometimes no one offers more than half of the support of an individual. Instead more than one person, who is able to take the exception but for the support test who together provide for more than half of the individual’s support. This being the case any single person who currently provides for more than 10% of the individual’s support but only that person singularly, can claim an exemption for that individual. In order to process this exemption, the individual in question must agree and therefore sign an agreement of exemption for that year.

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GOODESSAY