Test your knowledge

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

Choose wisely. There is only one correct answer.

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.

Which type of account helps you pay for medical expenses while also saving you money on taxes?

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401k

Flexible spending account

IRA

Flexible spending account. A flexible spending account lets you set aside money from your pay, thus reducing the amount of income you will be taxed on.

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.

Which federal program provides health care coverage for all US citizens age 65 or over?

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Social Security

Medicare

Medicaid

None of the above

Medicare. Medicare is paid for in part by taxes on our income.

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

Choose wisely. There is only one correct answer.

True

False

False. It varies depending on your filing status.

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