Course Catalog > Personal Finance > Courses

Personal Finance Courses: Taxes

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%

Keep studying!

Get a certificate for this quiz
Enter your name and email address below and we will generate a certificate for this quiz.

Review your answers below to learn more.

1.

Which of the following is true regarding tax credits?

Choose wisely. There is only one correct answer.

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.

2.

What kind of retirement planning contributions can help you save money on filing your taxes currently?

Choose wisely. There is only one correct answer.

A health savings account

A traditional IRA

A Roth 401(k)

A traditional IRA. Contributions to a traditional IRA can help you save money on filing your taxes currently. Roth 401(k)s cannot, and health savings accounts are not retirement plans.

3.

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.

4.

Having taxes withheld from your paycheck means you do not need to pay any more taxes.

Choose wisely. There is only one correct answer.

True

False

False. The taxes that are withheld from your paycheck are estimates of how much tax you must pay. Once you have filled out your tax return and determined the actual amount you owe, you will find that you owe more money or that you will get some money back.

5.

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

Choose wisely. There is only one correct answer.

True

False

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

© Copyright 2024 Precision Information, publisher of the Financial Fitness Group family of products. The trade name Financial Fitness Group and the trademarks Financial Fitness CENTER™, Financial Fitness CHECKUP™ and Financial Fitness ACADEMY™ are exclusive marks of Precision Information, LLC. All rights reserved.