R1

Question 1

What is taxed with the Individual preferential income tax rate?

Answer 1

Long-term capital gains and qualified dividends

Question 2

Increase in marginal tax rate

Answer 2

Calculate tax for old income and for new income
Subtract the difference
Divide the difference by the change in income

Question 3

Refundable credits are

Answer 3

FACES

Federal income tax withheld from W-2
American opportunity credit (40%)
Child tax credit
Earned income credit
Excess Social Security tax paid