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The various income tax filing statuses include _______.

Married filing separately

Head of household

Single

All of the above

All of the above. There are several statuses that determine your rate.

If you had more income tax taken out of your paycheck than you actually owe in taxes, what can you expect to happen?

You will get a refund.

You will owe more taxes.

The government will call it even.

You will get a refund. You had too much taken out. When you do your taxes in the spring, you will find out how much you will get back.

Everyone will have to pay Social Security tax on all their income, no matter how much it is.

True

False

False. The amount of earnings one must pay tax on is capped, though it usually changes every year.

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

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?

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.