Answered

The amount you owe in state income tax is based on:

A.How much you spend each year.

B.Your yearly earnings.

C.The value of your home.

D.How long you have lived in the state.

Verified Answer :

soneyedesola44

According to the question, the amount you owe in state income tax is only based on your yearly earnings.

Income tax is just the money paid to the government from all the money you earn, and it is usually calculated from the beginning to the end of the year. Take for example, as a salary earner, your employer deducts a fractional part of your pay as you earn, and remit it to the country's taxation office, on your behalf.

However, According to the income tax laws, there are steps to calculate the income tax and it is based on the total of five sources of income which a person can have. They are:

  • Income from salary,
  • Income from housing property,  
  • Income from all the businesses or profession you do if it is more than one
  • Income from the gains on capital investment.  

It is a must need that taxpayers file an income tax return once every year, without failure.  

An assessee income falls under any of the earlier mentioned sources of income. An assessee is a person who is liable to pay taxes to the government against any kind of income earned or loss incurred by him for the year's tax assessment.  

Taxes collected by the government serves as a sources of revenue and also to provide infrastructural facilities such as education, healthcare etc.

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KEYWORDS:

  • taxpayers
  • assessee
  • government
  • income tax

Option B is correct.

State income tax is based on the yearly earnings of the taxpayer.


Further Explanation:


State income tax: It is direct tax charged by the state. This tax is charged on the income which is earned by the assessee during a particular financial year from various sources. The state income tax is charged when the income of assessee is more than the prescribed threshold limit of state government. The state income tax’s provisions are different for different states.  


A.

How much you spend each year: This is an incorrect option. The assessee has to pay the tax on the income earned not on the spending of the assessee.


B.

Your yearly earnings: This is the correct option. The state income tax is calculated on the income earned from all valid sources of income.


C.

The value of the home: This is an incorrect option. The property tax is levied on the value of the home (property).


D.

How long you have lived in the state: This is an incorrect option. State income tax is calculated on the income of the assessee, not on the length of the time lived in the state.


Learn more:

1. Learn more about the tax on the profit from selling the fixed assets

https://brainly.com/question/2617534

2. Learn more about the personal tax

https://brainly.com/question/1762937

3. Learn more about the role of money

https://brainly.com/question/12984919


Answer details:

Grade: High School

Subject: Taxation

Chapter: Income Tax


Keywords: Amount, state income tax, based on, spend each year, yearly earnings, The value of your home, How long you have lived in the state, income tax, state income tax, income, profit, income from various sources.

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