Question

Regarding the Tax Tables related to the Federal income tax, which of the following statements is correct?

a) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules.

b) The Tax Tables will always yield the same amount of tax as the Tax Rate Schedules.

c) Taxpayers can elect as to whether they use the Tax Tables or the Tax Rate Schedules.

d) The Tax Tables can be used by an estate but not by a trust.

e) No correct answer is given

Answer 1

The correct statement is that the Tax Tables are issued by the IRS after the Tax Rate Schedules.

The correct statement regarding the Tax Tables related to the Federal income tax is option a) For any one year, the Tax Tables are issued by the IRS after the Tax Rate Schedules.

This means that the Tax Rate Schedules are issued first by the IRS which shows the tax rates applicable to different income levels. Then, based on these rates, the IRS issues the Tax Tables which show the actual amount of tax that needs to be paid for a given level of taxable income.