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– Nelson Mandela

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Unit 2 Challenges 2

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Q 1. What kind of tax is paid on the value of a car or home? 2. Which of the following items is included in gross income? 3. Max and Jo are married, and together they have a taxable income of $60,000. The tax brackets and tax rates are as follows: $0–$19,050: 10% $19,050–$77,400: 12% $77,400–$165,000: 22% How much tax should Max and Jo pay? 4. Sonam is not eligible for the Child Tax Credit but is a qualifying dependent of Sara. How will the dependent credit available for Sonam impact Sara's tax due?

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1. A property tax is assessed based on the value of the property that you own, such as your car or your home. 2. Interest, dividends, capital gains, and rents are included in gross income.