Personal Finance Courses: Taxes

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1.
What is the standard U.S. individual tax return called?
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The 1040. IRS Form 1040 is the standard form.
2.
The difference between a tax deduction and a tax credit is that _______.
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A tax deduction reduces your taxable income, and a tax credit reduces your actual tax. When you do the math, you will find that tax credits get you more money back than tax deductions do.
3.
Social Security is a federal _______.
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Retirement and disability income program.
4.
Which type of account helps you pay for medical expenses while also saving you money on taxes?
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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.
5.
What type of tax increases as your income increases?
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Progressive tax. Income tax is an example of a progressive tax.