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The federal tax rate you pay will vary depending on your age.

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True

False

False. It varies depending on your filing status.

Social Security is a federal _______.

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Health insurance program

Retirement income program

Disability income program

Retirement and disability income program

Retirement and disability income program.

Which of the following is true regarding tax credits?

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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.

You can take a tax deduction for some education-related expenses. Which of the following does that include?

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Interest paid on student loans

Tuition

Fees

All of the above

All of the above. All of these expenses qualify.

Having taxes withheld from your paycheck means you do not need to pay any more taxes.

Choose wisely. There is only one correct answer.

True

False

False. The taxes that are withheld from your paycheck are estimates of how much tax you must pay. Once you have filled out your tax return and determined the actual amount you owe, you will find that you owe more money or that you will get some money back.

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