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Personal information you will need to prepare your tax return includes _______.

Your former address

Your Social Security number

Your parents' names

Your Social Security number. Personal information you will need to prepare your tax return includes your Social Security number.

Retired workers receive more in benefits from Social Security than they contributed to it during their working years.

True

False

True. They receive more; this is a big advantage during one's retirement years.

Which of the following is true regarding tax credits?

A tax credit reduces your taxable income as reported on Form 1040.

A tax credit reduces the actual tax you owe.

For most taxpayers, the standard tax credit will be larger and more valuable than itemizing your credits.

A tax credit reduces the actual tax you owe. Within limits, a dollar of credit reduces your tax by a dollar.

The purpose of the W-4 form that you fill out when starting a new job is to determine _______.

How much you will earn during the year

How much should be withheld from your paycheck for federal income taxes

Whether you will get a refund when doing your taxes

How much should be withheld from your paycheck for federal income taxes. The W-4 helps you and your employer avoid overpaying or underpaying throughout the year.

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

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.