Question

Question 1

Daniel and Sharon have one child, aged 3. How much will a tax credit reduce their tax liability according to the text?

Group of answer choices

$2,500

$1,000

$3,000

$500

$2,000

Question 2

Mary earns $86,400. If the total Social Security tax rate is 15.3%, how much does his employer pay toward Social Security taxes for Mary? (Round to the nearest dollar.)

Group of answer choices

15,984

$13,219

$31,968

$6,610

$7, 992

Question 3

Which of the following statements regarding the tax levied under the Federal Insurance Contributions Act (FICA) also known as Social Security is true?

Group of answer choices

It is also known as property tax.

It is paid equally by employer and employee.

It is not applicable to self-employed persons.

It is applicable to all federal employees.

It is used to provide insurance against theft.

Answer 1

Answer e

$ 2000 is the amount of child tax credit that an household can claim for any child upto the age of 17 years.

Answer d $ 6610

The Liability of employer is half of total rate of tax os social security tax = 86400 * 15.3% * 0.5 = $ 6609.6 or $ 6610

Answer b

Social Security tax is a kind of tax which is contributed equallly by the employer and the employee (for the old age, and disability ) from the income. It is also applicable on the self employed people.