Course Quiz - Financial Fitness Center

1.

When it comes to your taxes, what is the standard deduction?

A list of specific deductions that you make yourself

A pre-set amount of money that you get to deduct

A tax credit for working families

None of the above

A pre-set amount of money that you get to deduct. As opposed to itemized deductions, the standard deduction is simpler and saves more money for most taxpayers.

2.

How do IRAs, 401k plans, health savings accounts and flexible spending accounts help lower your income taxes?

You get to deduct the money you contribute to them from your income.

Participating in one of these plans means you don't have to pay any taxes at all.

They don't actually help lower your income taxes.

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.

Only employees pay Social Security taxes on their earnings.

True

False

False. Employers pay the same amount on behalf of their employees, according to how much the employees pay.

4.

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.

5.

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.

Test your knowledge

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