Personal Finance Courses: Taxes

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1.
Which saves you more money -- the standard deduction or itemized deductions?
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It depends. For most people, the standard deduction saves more money. But for others, itemized deductions save more. When you do your taxes, you will find out which is better for you.
2.
How do IRAs, 401k plans, health savings accounts and flexible spending accounts help lower your income taxes?
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You get to deduct the money you contribute to them from your income. When you deduct the contributions you make to them, there is less money for you to be taxed on.
3.
What type of tax increases as your income increases?
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Progressive tax. Income tax is an example of a progressive tax.
4.
Only employees pay Social Security taxes on their earnings.
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False. Employers pay the same amount on behalf of their employees, according to how much the employees pay.
5.
What is the standard U.S. individual tax return called?
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The 1040. IRS Form 1040 is the standard form.