ACC 401 Week 1 DQ1 Basic Concepts

Basic Concepts. From Chapter 1, complete discussion questions 6, 9, & 10. From Chapter 2, complete discussion questions 3, 6, 9, & 10. Review Appendix E (2010 IRS Tax Forms) to see where dependents are shown on the tax return.

Chapter 1, complete discussion questions 6, 9, & 10

1. What is the definition of tax base, and how does it affect the amount of tax levied?

2. Explain what is meant by regressive tax. Why is the social security tax considered a regressive tax?

3. Define and compare these terms: average tax rate and marginal tax rate.

Chapter 2, complete discussion questions 3, 6, 9, & 10

1. What qualifications are necessary to file as head of household?

2. What are the three general tests that a qualifying person must meet to be a dependent of the taxpayer?

3. What are the four specific tests necessary to be a qualifying relative of the taxpayer?

4. What is a multiple support agreement, and what is its purpose?