Tax Rates Flashcards
Tax Rates:
What is the tax rate for corporate taxable income?
What recent act set this rate?
(1) A flat rate of 21% applies to corporate taxable income.
(2) The Tax Cuts and Jobs Act (TCJA) of 2017
Tax Rates:
What is the tax rate for individuals?
Marginal rates for individuals range from 10% to 37%.
Tax Rates:
The Tax Reform Act of 1986 lowered the Federal corporate income tax rate from a maximum of __% to __%.
The Tax Reform Act of 1986 lowered the Federal corporate income tax rate from a maximum of 46% to 34%.
Self-Employment Taxes:
What are the two parts?
(1) Social Security
(2) Medicare
Tax Rates:
How is the social security tax calculated?
A 12.4% tax for Social Security on up to $142,800 of self-
employment income in 2021, less any wages on which the tax is withheld.
Tax Rates:
How is the medicare tax calculated?
(Part 1) A 2.9% tax for Medicare
(Part 2) An additional Medicare tax of 0.9% percent applies to self-employment income in excess of $250,000 for married taxpayers and $200,000 for all
other taxpayers.
