A taxpayer may legally avoid paying federal income tax by a

A taxpayer may legally avoid paying federal income tax by:

a - working for a non-profit organization

b- none of the above

c- collecting income only from non-labor sources (stock dividends, bank interest, etc.)

d - receiving income in kind, not in cash.

Solution

answer is a

a- non- profit organisation is a service motive organisation rather than generating profit . so for that reason workers are nor charged federal tax since thier motive is to serve pulic like governments.

c- tax authority charges taxes on non-labour sources such as divident earned , interest income .

d- also there is federal tax on non cash reciept of gifts , inherent property , estates etc