Your average tax rate is your

Question

Quizplus · Accepted Answer

Your average tax rate is calculated as your total tax liability divided by your taxable income. This represents the percentage of your income that went towards taxes. Option A is incorrect because tax withheld is not equivalent to adjusted gross income. Option B is incorrect because it divides tax liability by gross income, which does not take into account deductions and exemptions. Option D is incorrect because it divides taxable income by tax withheld, which does not represent the tax rate. Option E is incorrect because tax refund is not an appropriate denominator for calculating average tax rate.

Your Average Tax Rate Is Your