Which of the following describes a range of taxable income taxed at a specified rate?

A tax bracket refers to a range of taxable income that is taxed at a specified rate. The tax system in many countries, including the United States, is progressive, meaning that as a taxpayer's income increases, different portions of that income are taxed at increasing rates.

For example, an individual may fall into a tax bracket where the first $10,000 is taxed at 10%, the next $30,000 is taxed at 12%, and any income above that is taxed at 22%. Each level or range of income within the tax brackets is subject to its respective rate. Therefore, understanding tax brackets is essential for determining how much tax a person owes based on their taxable income, allowing for proper calculation of federal income tax liability.

The other terms do not accurately describe this concept. A tax deduction reduces the amount of taxable income, a tax credit directly reduces the amount of tax owed, and tax liability refers to the total amount of tax owed by a taxpayer, which can be influenced by those deductions and credits but does not imply a range of income taxed at specific rates.