The Joneses have a taxable income of $18,000, all in the form of wages. They have three children, and they take the standard deduction.
-Which statement is true?

Question

Quizplus · Accepted Answer

Social Security tax is a flat rate (6.2% for employees in 2023) on wages up to a certain limit, while personal income tax rates are progressive and can be reduced significantly by deductions and credits, especially for families with children. Given the Joneses' modest income and their ability to take the standard deduction and potentially other tax benefits for having children, it's likely they would owe little to no personal income tax, making Social Security tax their larger tax liability.

The Joneses Have a Taxable Income of $18,000, All in the Form