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1.
What kind of retirement planning contributions can help you save money on filing your taxes currently?
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A traditional IRA. Contributions to a traditional IRA can help you save money on filing your taxes currently.
2.
The kiddie tax is a term that applies to what type of income?
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Unearned income received by people under a certain age. The kiddie tax applies to investment income and other types of unearned income.
3.
Tax considerations will be the paramount factor in any smart business person's or investor's financial decision-making process.
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False. Tax considerations are important, of course, but should not drive the decision-making process.
4.
Tax-deductible education expenses include only amounts paid for tuition and fees at an accredited college or university.
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False. Tuition at an accredited vocational school is also a qualified education expense.
5.
Which of the following statements is true?
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Both the above are true. Postponing income and accelerating deductions are both good tax strategies.