Lesson 4.5 Learning Assessment: Tax Obligations

By abby_shouse

  • Tax Obligations

    List of Tax Obligations
    1. Treasury Offset Program
    2. IRS Priority
    3. Child Support Payment
    4. Non-Tax Federal Debts
    5. State Debts
    "Incentive tax credits may be used to encourage behaviors like investment or parenting." Directly reduces tax bills from which the tax bill is calculated.

  • Someone I Know Impacted by Tax Credits and Debt

    "A tax credit is a tax incentive which allows certain taxpayers to subtract the amount of the credit from the total they owe the state." Let's imagine my brother is in mortgage debt and he needs $2500. The impacts on his tax credits are huge. Because Child Support, IRS priority, federal debts are important. "A tax deduction reduces your taxable income. Your total deductions are subtracted from your taxable income in order to determine your total tax bill for the
    year."