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There is one federal income tax rate that all taxpayers pay.

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True

False

False. As you earn more money, your rate increases.

When it comes to your taxes, what is the standard deduction?

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A list of specific deductions that you make yourself

A pre-set amount of money that you get to deduct

A tax credit for working families

None of the above

A pre-set amount of money that you get to deduct. As opposed to itemized deductions, the standard deduction is simpler and saves more money for most taxpayers.

What is the standard U.S. individual tax return called?

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The W2

The 1040

The IRS form

The 1099

The 1040. IRS Form 1040 is the standard form.

Everyone will have to pay Social Security tax on all their income, no matter how much it is.

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True

False

False. The amount of earnings one must pay tax on is capped, though it usually changes every year.

What kind of retirement planning contributions can help you save money on filing your taxes currently?

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A health savings account

A traditional IRA

A Roth 401(k)

A traditional IRA. Contributions to a traditional IRA can help you save money on filing your taxes currently. Roth 401(k)s cannot, and health savings accounts are not retirement plans.

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