1-2g Income Taxes

Question 0

State income taxes

Answer 0

Follow the federal tax rate structure with few differences

Question 1

Federal income tax

Answer 1

• gifts, inheritances, life insurance proceeds, interest income from state and local bonds are tax exempt
• income rates for all entities are progressive
• estates and trusts are subject to income taxation
• deductions for AGI are related to business activities while deductions from AGI are personal in nature

Question 2

Local income taxes

Answer 2

Taxed on individuals who live in the suburbs but work in the city, as well as from local residents