1. What two factors determine the amount of federal withholding taxes that will be deducted from gross earnings each pay period? Explain. 2. Define and differentiate between gross income and AGI. Name...

1. What two factors determine the amount of federal withholding taxes that will be deducted from gross earnings each pay period? Explain.

2. Define and differentiate between gross income and AGI. Name several types of taxexempt income. What is passive income?

3. Define and differentiate between the average tax rate and the marginal tax rate. How does a tax credit differ from an itemized deduction?