With respect to the income tax formula,which of the following statements is correct?

Question

Quizplus · Accepted Answer

The income tax formula includes multiple tax rates for different income levels, and tax credits are used to reduce tax liability. Therefore, statement A and D are incorrect. Total income includes all income sources, while taxable income is the income remaining after deductions and exemptions. Therefore, statement C is also incorrect. It is not always the case that a tax return will result in a refund or additional tax liability, as some taxpayers may owe exactly what they paid in throughout the year. However, it is common for taxpayers to receive a refund or owe additional taxes. Statement B is correct because it acknowledges this common occurrence.

With Respect to the Income Tax Formula,which of the Following