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1.
Which of the following is true regarding tax credits?
A tax credit reduces the actual tax you owe. Within limits, a dollar of credit reduces your tax by a dollar.
2.
You can take a tax deduction for some education-related expenses. Which of the following does that include?
All of the above. All of these expenses qualify.
3.
The purpose of the W-4 form that you fill out when starting a new job is to determine _______.
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.
4.
Social Security is a federal _______.
Retirement and disability income program.
5.
What is the name of the United States' tax collection agency?
The Internal Revenue Service. The Internal Revenue Service is the agency that collects taxes for the United States.